I

104TH CONGRESS

1ST SESSION H. R. 2406

To repeal the United States Housing Act of 1937, deregulate the public

housing program and the program for rental housing assistance for

low-income families, and increase community control over such programs,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 27, 1995

Mr. LAZIO of New York (for himself, Mr. LEACH, Mr. MCCOLLUM, Mr.

BAKER of Louisiana, Mr. CASTLE, Mr. WELLER, Mr. BONO, Mr. EHRLICH, Mr. CREMEANS, Mr. FOX of Pennsylvania, Mr. HEINEMAN, and

Mrs. KELLY) introduced the following bill; which was referred to the

Committee on Banking and Financial Services

A BILL

To repeal the United States Housing Act of 1937, deregulate

the public housing program and the program for rental

housing assistance for low-income families, and increase

community control over such programs, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘United States Housing Act of 1995’’.
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1 (b) TABLE OF CONTENTS.—The table of contents for

2 this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Declaration of policy to renew American neighborhoods.

TITLE I—GENERAL PROVISIONS

Sec. 101. Statement of purpose.

Sec. 102. Definitions.

Sec. 103. Organization of local housing and management authorities.

Sec. 104. Determination of adjusted income.

Sec. 105. Limitation on admission of drug or alcohol abusers to assisted housing.

Sec. 106. Community work and family self-sufficiency requirement.

Sec. 107. Community improvement plans.

Sec. 108. Review of plans.

Sec. 109. Headquarters reserve fund.

Sec. 110. Labor standards.

Sec. 111. Nondiscrimination.

Sec. 112. Effective date and regulations.

TITLE II—PUBLIC HOUSING

Subtitle A—Block Grants

Sec. 201. Block grant contracts.

Sec. 202. Block grant authority and amount.

Sec. 203. Eligible and required activities.

Sec. 204. Determination of block grant allocation.

Sec. 205. Sanctions for improper use of amounts.

Subtitle B—Admissions and Occupancy Requirements

Sec. 221. Low-income housing requirement.

Sec. 222. Family income eligibility.

Sec. 223. Preferences for occupancy.

Sec. 224. Admission procedures.

Sec. 225. Family rental payment.

Sec. 226. Lease requirements.

Sec. 227. Designated housing for elderly and disabled families.

Subtitle C—Management

Sec. 231. Management procedures.

Sec. 232. Administrative grievance procedure.

Sec. 233. Housing quality requirements.

Sec. 234. Employment of residents.

Sec. 235. Resident councils and resident management corporations.

Sec. 236. Management by resident management corporation.

Sec. 237. Transfer of management of certain housing to independent manager

at request of residents.

Subtitle D—Homeownership

Sec. 251. Resident homeownership programs.
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Subtitle E—Disposition and Demolition of Developments

Sec. 261. Requirements for demolition and disposition of developments.

Subtitle F—General Provisions

Sec. 271. Conversion to block grant assistance.

Sec. 272. Payment of non-Federal share.

Sec. 273. Definitions.

Sec. 274. Authorization of appropriations.

TITLE III—CHOICE-BASED RENTAL HOUSING AND

HOMEOWNERSHIP ASSISTANCE FOR LOW-INCOME FAMILIES

Subtitle A—Grants and Allocation

Sec. 301. Authority to provide housing assistance grants.

Sec. 302. Grant agreements.

Sec. 303. Allocation of amounts.

Sec. 304. Administrative fees.

Sec. 305. Authorizations of appropriations.

Sec. 306. Conversion of section 8 assistance.

Subtitle B—Choice-Based Housing Assistance for Eligible Families

Sec. 321. Eligible families and preferences for assistance.

Sec. 322. Resident contribution.

Sec. 323. Rental indicators.

Sec. 324. Lease terms.

Sec. 325. Termination of tenancy.

Sec. 326. Eligible owners.

Sec. 327. Selection of dwelling units.

Sec. 328. Eligible dwelling units.

Sec. 329. Homeownership option.

Sec. 330. Administrative grievance procedure.

Subtitle C—Payment of Housing Assistance on Behalf of Assisted Families

Sec. 351. Housing assistance payments contracts.

Sec. 352. Amount of monthly assistance payment.

Sec. 353. Payment standards.

Sec. 354. Reasonable rents.

Sec. 355. Prohibition of assistance for vacant rental units.

Sec. 356. Prohibition of portability.

Subtitle D—General and Miscellaneous Provisions

Sec. 371. Definitions.

Sec. 372. Rental assistance fraud recoveries.

Subtitle E—Provisions Relating to Discontinued HUD-Administered Programs

for Project-Based Assistance

Sec. 381. Prohibition of discrimination in subsidized projects.

TITLE IV—ACCREDITATION AND OVERSIGHT OF LOCAL HOUSING

AND MANAGEMENT AUTHORITIES

Subtitle A—Housing Foundation and Accreditation Board
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Sec. 401. Establishment.

Sec. 402. Membership.

Sec. 403. Functions.

Sec. 404. Initial establishment of standards and procedures for LHMA compliance.

Sec. 405. Powers.

Sec. 406. Fees.

Sec. 407. Reports.

Subtitle B—Accreditation and Oversight Standards and Procedures

Sec. 431. Establishment of performance benchmarks and accreditation procedures.

Sec. 432. Annual financial and performance audit.

Sec. 433. Annual classification by performance category.

Sec. 434. Accreditation.

Sec. 435. Performance agreements for troubled authorities.

Sec. 436. Option to demand conveyance of title to or possession of public housing.

Sec. 437. Removal of ineffective LHMA’s.

Sec. 438. Mandatory takeover of chronically troubled PHA’s.

Sec. 439. Treatment of troubled PHA’s.

Sec. 438. Maintenance of and access to records.

Sec. 440. Annual reports regarding troubled LHMA’s.

Sec. 442. Applicability to resident management corporations.

Sec. 443. Inapplicability to Indian housing.

TITLE V—REPEALS AND CONFORMING AMENDMENTS

Sec. 501. Repeals.

Sec. 502. Conforming provisions.

1 SEC. 2. DECLARATION OF POLICY TO RENEW AMERICAN

2 NEIGHBORHOODS.

3 The Congress hereby declares that—

4 (1) the Federal Government has a responsibility

5 to promote the general welfare of the Nation—

6 (A) by using Federal resources to aid fami7 lies and individuals seeking affordable homes

8 that are safe, clean, and healthy and, in par9 ticular, assisting responsible, deserving citizens

10 who cannot provide fully for themselves because
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1 of temporary circumstances or factors beyond

2 their control;

3 (B) by working to ensure a thriving na4 tional economy and a strong private housing

5 market; and

6 (C) by developing effective partnerships

7 among the Federal Government, State and local

8 governments, and private entities that allow

9 government to accept responsibility for foster10 ing the development of a healthy marketplace

11 and allow families to prosper without govern12 ment involvement in their day-to-day activities;

13 (2) the Federal Government cannot through its

14 direct action or involvement provide for the housing

15 of every American citizen, or even a majority of its

16 citizens, but it is the responsibility of the Govern17 ment to promote and protect the independent and

18 collective actions of private citizens to develop hous19 ing and strengthen their own neighborhoods;

20 (3) the Federal Government should act only

21 where there is a serious need that private citizens or

22 groups cannot or are not addressing responsibly; and

23 (4) merely providing physical structures to

24 house low-income families will not pull generations

25 up from poverty, but housing is a fundamental com-
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1 ponent of bringing true opportunity to people and

2 communities in need.

3 TITLE I—GENERAL PROVISIONS

4 SEC. 101. STATEMENT OF PURPOSE.

5 The purpose of this Act is to promote housing oppor6 tunities that are affordable to low-income families by—

7 (1) deregulating and decontrolling public hous8 ing agencies, which in this Act are referred to as

9 ‘‘local housing and management authorities’’, and

10 thereby enable them to perform as property and

11 asset managers;

12 (2) providing for more flexible use of Federal

13 assistance to local housing and management authori14 ties, allowing the authorities to leverage and combine

15 assistance amounts with amounts obtained from

16 other sources;

17 (3) facilitating mixed income communities;

18 (4) increasing accountability and rewarding ef19 fective management of local housing and manage20 ment authorities;

21 (5) creating incentives for residents of dwelling

22 units assisted by local housing and management au23 thorities to work; and

24 (6) recreating the existing rental assistance

25 voucher program so that the use of vouchers and re-
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1 lationships between landlords and tenants under the

2 program operate in a manner that more closely re3 sembles the private housing market.

4 SEC. 102. DEFINITIONS.

5 For purposes of this Act, the following definitions

6 shall apply:

7 (1) COMMUNITY IMPROVEMENT PLAN.—The

8 term ‘‘community improvement plan’’ means, with

9 respect to any fiscal year, the plan under section

10 107 of a local housing and management authority

11 for such fiscal year.

12 (2) DISABLED FAMILY.—The term ‘‘disabled

13 family’’ means a family whose head (or his or her

14 spouse), or whose sole member, is a person with dis15 abilities. Such term includes 2 or more persons with

16 disabilities living together, and 1 or more such per17 sons living with 1 or more persons determined under

18 the regulations of the Secretary to be essential to

19 their care or well-being.

20 (3) DRUG-RELATED CRIMINAL ACTIVITY.—The

21 term ‘‘drug-related criminal activity’’ means the ille22 gal manufacture, sale, distribution, use, or posses23 sion with intent to manufacture, sell, distribute, or

24 use, of a controlled substance (as such term is de-
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1 fined in section 102 of the Controlled Substances

2 Act).

3 (4) ELDERLY FAMILIES AND NEAR ELDERLY

4 FAMILIES.—The terms ‘‘elderly family’’ and ‘‘near5 elderly family’’ mean a family whose head (or his or

6 her spouse), or whose sole member, is an elderly per7 son or a near-elderly person, respectively. Such

8 terms include 2 or more elderly persons or near-el9 derly persons living together, and 1 or more such

10 persons living with 1 or more persons determined

11 under the regulations of the Secretary to be essential

12 to their care or well-being.

13 (5) ELDERLY PERSON.—The term ‘‘elderly per14 son’’ means a person who is at least 62 years of age.

15 (6) FAMILY.—The term ‘‘family’’ includes a

16 family with or without children, an elderly family, a

17 near-elderly family, a disabled family, and a single

18 person.

19 (7) LOCAL HOUSING AND MANAGEMENT AU20 THORITY.—The term ‘‘local housing and manage21 ment authority’’ is defined in section 103.

22 (8) INCOME.—The term ‘‘income’’ means, with

23 respect to a family, income from all sources of each

24 member of the household, as determined in accord25 ance with criteria prescribed by the applicable local
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1 housing and management authority and the Sec2 retary, except that the following amounts shall be

3 excluded:

4 (A) Any amounts not actually received by

5 the family.

6 (B) Any amounts that would be eligible for

7 exclusion under section 1613(a)(7) of the Social

8 Security Act.

9 (9) INDIAN.—The term ‘‘Indian’’ means any

10 person recognized as being an Indian, Alaska Na11 tive, or Native Hawaiian by an Indian tribe, the

12 Federal Government, or any State.

13 (10) INDIAN AREA.—The term ‘‘Indian area’’

14 means the area within which an Indian housing au15 thority is authorized to provide low-income housing

16 assistance under this Act.

17 (11) INDIAN HOUSING AUTHORITY.—The term

18 ‘‘Indian housing authority’’ means any entity that—

19 (A) is authorized to engage in or assist in

20 the production or operation of low-income hous21 ing for Indians that is assisted under this Act;

22 and

23 (B) is established—
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1 (i) by exercise of the power of self2 government of an Indian tribe independent

3 of State law; or

4 (ii) by operation of State law provid5 ing specifically for housing authorities for

6 Indians, including regional housing au7 thorities in the State of Alaska.

8 (12) INDIAN TRIBE.—The term ‘‘Indian tribe’’

9 means any tribe, band, pueblo, group, community, or

10 nation of Indians, Alaska Natives, or Native Hawai11 ians.

12 (13) LOW-INCOME FAMILY.—The term ‘‘low-in13 come family’’ means a family whose income does not

14 exceed 80 percent of the median income for the

15 area, except that a local housing and management

16 authority may, for purposes of this paragraph, es17 tablish income ceilings higher or lower than 80 per18 cent of the median for the area on the basis of the

19 authority’s findings that such variations are nec20 essary because of unusually high or low family in21 comes.

22 (14) LOW-INCOME HOUSING.—The term ‘‘low23 income housing’’ means dwellings that comply with

24 the requirements—
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1 (A) under subtitle B of title II for assist2 ance under such title for the dwellings; or

3 (B) under title III for rental assistance

4 payments under such title for the dwellings.

5 (15) NEAR-ELDERLY PERSON.—The term

6 ‘‘near-elderly person’’ means a person who is at least

7 55 years of age.

8 (16) PERSON WITH DISABILITIES.—The term

9 ‘‘person with disabilities’’ means a person who—

10 (A) has a disability as defined in section

11 223 of the Social Security Act; or

12 (B) has a developmental disability as de13 fined in section 102 of the Developmental Dis14 abilities Assistance and Bill of Rights Act.

15 Such term shall not exclude persons who have the

16 disease of acquired immunodeficiency syndrome or

17 any conditions arising from the etiologic agent for

18 acquired immunodeficiency syndrome.

19 (17) PUBLIC HOUSING.—The term ‘‘public

20 housing’’ means housing, and all necessary appur21 tenances thereto, that—

22 (A) is low-income housing or low-income

23 dwelling units in mixed income housing (as pro24 vided in section 221(c)(2)); and
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1 (B)(i) is subject to an annual block grant

2 contract under title II; or

3 (ii) was subject to an annual block grant

4 contract under title II (or an annual contribu5 tions contract under the United States Housing

6 Act of 1937) which is not in effect, but for

7 which occupancy is limited in accordance with

8 the requirements under section 222(a).

9 (18) SECRETARY.—The term ‘‘Secretary’’

10 means the Secretary of Housing and Urban Develop11 ment.

12 (19) STATE.—The term ‘‘State’’ means the

13 States of the United States, the District of Colum14 bia, the Commonwealth of Puerto Rico, the Com15 monwealth of the Northern Mariana Islands, Guam,

16 the Virgin Islands, American Samoa, any other ter17 ritory or possession of the United States, and Indian

18 tribes.

19 (20) VERY LOW-INCOME FAMILY.—The term

20 ‘‘very low-income family’’ means a low-income family

21 whose income does not exceed 50 percent of the me22 dian family income for the area, except that a local

23 housing and management authority may, for pur24 poses of this paragraph, establish income ceilings

25 higher or lower than 50 percent of the median for
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1 the area on the basis of the authority’s findings that

2 such variations are necessary because of unusually

3 high or low family incomes.

4 SEC. 103. ORGANIZATION OF LOCAL HOUSING AND MAN5 AGEMENT AUTHORITIES.

6 (a) REQUIREMENTS.—For purposes of this Act, the

7 terms ‘‘local housing and management authority’’ and

8 ‘‘authority’’ mean any entity that—

9 (1) is—

10 (A) a public housing agency or Indian

11 housing authority that was authorized under

12 the United States Housing Act of 1937 to en13 gage in or assist in the development or oper14 ation of low-income housing;

15 (B) authorized under this Act to engage in

16 or assist in the development or operation of

17 low-income housing by any State, county, mu18 nicipality, or other governmental body or public

19 entity; or

20 (C) an entity selected by the Secretary,

21 pursuant to subtitle B of title IV, to manage

22 housing; and

23 (2) complies with the requirements under sub24 section (b).

25 (b) GOVERNANCE.—
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1 (1) BOARD OF DIRECTORS.—Each local housing

2 and management authority shall have a board of di3 rectors or other form of governance as prescribed in

4 State or local law. No person may be barred from

5 serving on such board or body because of such per6 son’s residency in a public housing project.

7 (2) RESIDENT MEMBERSHIP.—

8 (A) IN GENERAL.—Except as provided in

9 subparagraph (B), in localities in which a local

10 housing and management authority is governed

11 by a board of directors or other similar body,

12 the board or body shall include not less than 1

13 member who—

14 (i) is (I) a resident of a public hous15 ing dwelling unit owned or operated by the

16 authority, or (II) a member of an assisted

17 family under title III; and

18 (ii) is elected by residents of such

19 public housing dwelling units and assisted

20 families.

21 (B) EXCEPTIONS.—The requirement in

22 subparagraph (A) with respect to a resident

23 member shall not apply to—

24 (i) any State or local governing body

25 that serves as a local housing and manage-
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1 ment authority for purposes of this Act

2 and whose responsibilities include substan3 tial activities other than acting as the local

4 housing and management authority, except

5 that such requirement shall apply to any

6 advisory committee or organization that is

7 established by such governing body and

8 whose responsibilities relate only to the

9 governing body’s functions as a local hous10 ing and management authority for pur11 poses of this Act;

12 (ii) any local housing and manage13 ment authority that owns or operates less

14 than 250 public housing dwelling units (in15 cluding any authority that does not own or

16 operate public housing); or

17 (iii) any local housing and manage18 ment authority that manages public hous19 ing consisting primarily of scattered site

20 public housing.

21 (3) FULL PARTICIPATION.—No local housing

22 and management authority may limit or restrict the

23 capacity or offices in which a member of such board

24 or body may serve on such board or body solely be25 cause of the member’s status as a resident member.
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1 (4) CONFLICTS OF INTEREST.—The Secretary

2 shall establish guidelines to prevent conflicts of in3 terest on the part of members of the board or direc4 tors or governing body of a local housing and man5 agement authority.

6 (5) DEFINITION.—For purposes of this sub7 section, the term ‘‘resident member’’ means a mem8 ber of the board of directors or other similar govern9 ing body of a local housing and management author10 ity who is a resident of a public housing dwelling

11 unit administered or assisted by the authority or is

12 an assisted family (as such term is defined in section

13 371).

14 (c) ESTABLISHMENT OF POLICIES.—Any rules, regu15 lations, policies, standards, and procedures necessary to

16 implement policies required under section 107 to be in17 cluded in the community improvement plan for a local

18 housing and management authority shall be approved by

19 the board of directors or similar governing body of the

20 authority and shall be publicly available for review upon

21 request.

22 SEC. 104. DETERMINATION OF ADJUSTED INCOME.

23 (a) IN GENERAL.—For purposes of this Act, the term

24 ‘‘adjusted income’’ means, with respect to a family, the

25 difference between the income of the members of the fam-
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1 ily residing in a dwelling unit or the persons on a lease

2 and the amount of any income exclusions for the family

3 under subsections (b) and (c), as determined by the local

4 housing and management authority.

5 (b) MANDATORY EXCLUSIONS FROM INCOME.—In

6 determining adjusted income, a local housing and manage7 ment authority shall exclude from the annual income of

8 a family the following amounts:

9 (1) ELDERLY AND DISABLED FAMILIES.—$400

10 for any elderly or disabled family.

11 (2) MEDICAL EXPENSES.—The amount by

12 which 3 percent of the annual family income is ex13 ceed by the sum of—

14 (A) unreimbursed medical expenses of the

15 family; and

16 (B) unreimbursed reasonable attendant

17 care and auxiliary apparatus expenses for each

18 handicapped member of the family, to the ex19 tent necessary to enable any member of such

20 family (including such handicapped member) to

21 be employed.

22 (3) CHILD CARE EXPENSES.—Any reasonable

23 child care expenses necessary to enable a member of

24 the family to be employed or to further his or her

25 education.
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1 (c) PERMISSIVE EXCLUSIONS FROM INCOME.—In de2 termining adjusted income, a local housing and manage3 ment authority may, in the discretion of the authority, es4 tablish exclusions from the annual income of a family.

5 Such exclusions may include the following amounts:

6 (1) MINORS.—$480 for each member of the

7 family residing in the household (other than the

8 head of the household or his spouse) who is under

9 18 years or age, or who is 18 years of age or older

10 and is disabled, handicapped, or a full-time student.

11 (2) EXCESSIVE TRAVEL EXPENSES.—Excessive

12 travel expenses in an amount not to exceed $25 per

13 family per week, for employment- or education-relat14 ed travel.

15 (3) EARNED INCOME.—An amount of any

16 earned income of the family, established at the dis17 cretion of the local housing and management author18 ity, which may be based on—

19 (A) all earned income of the family,

20 (B) the amount earned by particular mem21 bers of the family;

22 (C) the amount earned by families having

23 certain characteristics; or
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1 (D) the amount earned by families or

2 members during certain periods or from certain

3 sources.

4 (4) OTHERS.—Such other amounts for other

5 purposes, as the local housing and management au6 thority may establish.

7 SEC. 105. LIMITATION ON ADMISSION OF DRUG OR ALCO8 HOL ABUSERS TO ASSISTED HOUSING.

9 Notwithstanding any other provision of law, a local

10 housing and management authority may establish stand11 ards for occupancy in public housing dwelling units and

12 assistance under title III, that prohibit admission to such

13 units and assistance under title III by any person whose

14 current illegal use or history of illegal use of a controlled

15 substance or whose use of alcohol provides reasonable

16 cause for the authority to believe that the occupancy by

17 such person may interfere with the health, safety, or right

18 to peaceful enjoyment of the premises by other residents.

19 SEC. 106. COMMUNITY WORK AND FAMILY SELF-SUFFI20 CIENCY REQUIREMENT.

21 (a) REQUIREMENT.—Each local housing and man22 agement authority shall require, as a condition of occu23 pancy of a public housing dwelling unit by a family and

24 of providing housing assistance under title III on behalf

25 of a family, that each adult member of the family shall—
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1 (1) contribute not less than 8 hours of work per

2 month within the community in which the family re3 sides; or

4 (2) participate on an ongoing basis in a pro5 gram designed to promote economic self-sufficiency.

6 (b) EXEMPTIONS.—A local housing and management

7 authority may provide for the exemption, from the applica8 bility of the requirement under subsection (a), of each in9 dividual who is—

10 (1) an elderly person;

11 (2) a person with disabilities and unable, as de12 termined in accordance with guidelines established

13 by the Secretary, to comply with the requirement; or

14 (3) working, attending school or vocational

15 training, or otherwise complying with work require16 ments applicable under other public assistance pro17 grams.

18 SEC. 107. COMMUNITY IMPROVEMENT PLANS.

19 (a) IN GENERAL.—In accordance with this section,

20 the Secretary shall provide for each local housing and

21 management authority to submit to the Secretary a com22 munity improvement plan under this section for each fiscal

23 year that describes the mission of the local housing and

24 management authority and the goals, objectives, and poli-
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1 cies of the authority to meet the housing needs of low2 income families in the jurisdiction of the authority.

3 (b) PROCEDURES.—The Secretary shall establish re4 quirements and procedures for submission and review of

5 plans and for the contents of such plans. Such procedures

6 shall provide for local housing and management authori7 ties to, at the option of the authority, submit plans under

8 this section together with, or as part of, the comprehensive

9 housing affordability strategy under section 105 of the

10 Cranston-Gonzalez National Affordable Housing Act for

11 the relevant jurisdiction and for concomitant review of

12 such plans.

13 (c) CONTENTS.—A community improvement plan

14 under this section for a local housing and management

15 authority shall contain the following information relating

16 to the upcoming fiscal year for which the assistance under

17 this Act is to be made available:

18 (1) FINANCIAL RESOURCES.—An operating

19 budget for the authority that includes—

20 (A) a description of the financial resources

21 available to the authority;

22 (B) the uses to which such resources will

23 be committed, including eligible and required

24 activities under section 203 to be assisted,

25 housing assistance to be provided under title
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1 III, and administrative, management, mainte2 nance, capital improvement activities to be car3 ried out; and

4 (C) an estimate of the market value of

5 each public housing development of the author6 ity.

7 (2) POPULATION SERVED.—A statement of the

8 policies of the authority governing eligibility, admis9 sions, and occupancy of families with respect to pub10 lic housing dwelling units and housing assistance

11 under title III, including—

12 (A) the requirements for eligibility for such

13 units and assistance and the method by which

14 eligibility will be determined and verified;

15 (B) the requirements for selection and ad16 missions of eligible families for such units and

17 assistance, including any preferences estab18 lished under section 223 or 321(c) and the cri19 teria for selection under section 222(b);

20 (C) the procedures for assignment of fami21 lies admitted to dwelling units owned, operated,

22 or assisted by the authority;

23 (D) any standards and requirements for

24 occupancy of public housing dwelling units and

25 units assisted under title III, including condi-
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1 tions for continued occupancy, termination of

2 tenancy, and eviction;

3 (E) the criteria under subsections (d) and

4 (f) of section 321 for providing and denying

5 housing assistance under title III to families

6 moving into the jurisdiction of the authority;

7 and

8 (F) the fair housing policy of the author9 ity.

10 (3) RENT DETERMINATION.—A statement of

11 the policies of the authority governing rents charged

12 for public housing dwelling units and rental con13 tributions of assisted families under title III, includ14 ing—

15 (A) the methods by which such rents are

16 determined under section 225 and such con17 tributions are determined under section 322;

18 (B) an analysis of how such methods af19 fect—

20 (i) the ability of the authority to pro21 vide housing assistance for families having

22 a broad range of incomes;

23 (ii) the affordability of housing for

24 families having incomes that do not exceed
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1 30 percent of the median family income for

2 the area; and

3 (iii) the availability of other financial

4 resources to the authority.

5 (4) QUALITY STANDARDS FOR MAINTENANCE

6 AND MANAGEMENT.—A statement of the standards

7 and policies of the authority governing maintenance

8 and management of housing owned, operated, or as9 sisted by the authority, and management of the local

10 housing and management authority, including—

11 (A) housing quality standards in effect

12 pursuant to sections 233 and 328 and any cer13 tifications required under such sections;

14 (B) routine and preventative maintenance

15 policies;

16 (C) emergency and disaster plans;

17 (D) rent collection and security policies for

18 public housing;

19 (E) priorities and improvements for man20 agement of public housing; and

21 (F) priorities and improvements for man22 agement of the authority, including improve23 ment of electronic information systems to facili24 tate managerial capacity and efficiency.
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1 (5) GRIEVANCE PROCEDURE.—A statement of

2 the grievance procedures of the authority under sec3 tions 232 and 330.

4 (6) CAPITAL IMPROVEMENTS.—With respect to

5 public housing developments owned or operated by

6 the authority, a plan describing—

7 (A) the capital improvements necessary to

8 ensure long-term physical and social viability of

9 the developments; and

10 (B) the priorities of the authority for cap11 ital improvements based on analysis of available

12 financial resources, consultation with residents,

13 and health and safety considerations.

14 (7) DEMOLITION AND DISPOSITION.—With re15 spect to public housing developments owned or oper16 ated by the authority—

17 (A) a description of any such housing to be

18 demolished or disposed of under subtitle E of

19 title II;

20 (B) a timetable for such demolition or dis21 position; and

22 (C) any information required under section

23 261(h) with respect to such demolition or dis24 position.
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1 (8) DESIGNATION OF HOUSING FOR ELDERLY

2 AND DISABLED FAMILIES.—With respect to public

3 housing developments owned or operated by the au4 thority, a description of any developments (or por5 tions thereof) that the authority has designated or

6 will designate for occupancy by elderly and disabled

7 families in accordance with section 227 and any in8 formation required under section 227(d) for such

9 designated developments.

10 (9) CONVERSION OF PUBLIC HOUSING.—With

11 respect to public housing owned or operated by the

12 authority, a description of any building or buildings

13 that the authority is required under section 203(b)

14 to convert to housing assistance under title III, an

15 analysis of such buildings showing that the buildings

16 meet the requirements under such section for such

17 conversion, and a statement of the amount of grant

18 amounts under title II to be used for rental assist19 ance under title III.

20 (10) HOMEOWNERSHIP ACTIVITIES.—A descrip21 tion of any homeownership programs of the author22 ity under subtitle D or section 329 for the authority

23 and the requirements and assistance available under

24 such programs.
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1 (d) 10-YEAR PLAN.—Each community improvement

2 plan under this section for a local housing and manage3 ment authority shall contain, with respect to the 10-year

4 period beginning with the fiscal year for which the plan

5 is submitted, the following information:

6 (1) STATEMENT OF MISSION.—A statement of

7 the mission of the authority for serving the needs of

8 low-income families in the jurisdiction of authority

9 during such period.

10 (2) GOALS AND OBJECTIVES.—A statement of

11 the goals and objectives of the authority that will en12 able the authority to serve the needs identified pur13 suant to paragraph (1) during such period.

14 (3) CAPITAL IMPROVEMENT OVERVIEW.—If the

15 authority will provide capital improvements for pub16 lic housing developments during such period, an

17 overview of such improvements, the rationale for

18 such improvements, and an analysis of how such im19 provements will enable the authority to meet its

20 goals, objectives, and mission.

21 (e) CITIZEN PARTICIPATION.—

22 (1) IN GENERAL.—Before submitting a plan

23 under this section or an amendment under section

24 108(f) to a plan, a local housing and management

25 authority shall make the plan or amendment publicly
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1 available in a manner that affords affected public

2 housing residents and assisted families under title

3 III, citizens, public agencies, and other interested

4 parties an opportunity, for a period not shorter than

5 60 days and ending at a time that reasonably pro6 vides for compliance with the requirements of para7 graph (2), to examine its content and to submit

8 comments to the authority.

9 (2) CONSIDERATION OF COMMENTS.—A local

10 housing and management authority shall consider

11 any comments or views provided pursuant to para12 graph (1) in preparing a final plan or amendment

13 for submission to the Secretary. A summary of such

14 comments or views shall be attached to the plan,

15 amendment, or report submitted. The submitted

16 plan, amendment, or report shall be made publicly

17 available upon submission.

18 (f) PLANS FOR SMALL LMHA’S.—The Secretary

19 shall establish requirements applicable to housing and

20 management authorities that own or operate less than 250

21 public housing dwelling units for submission of plans

22 under this section and the information to be included in

23 such plans that waive any requirements under this section

24 that the Secretary determines are burdensome or unneces25 sary for such agencies.
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1 (g) REGULATIONS.—Notwithstanding sections 563(a)

2 and 565(a) of title 5, United States Code, any proposed

3 regulation relating to the required contents of plans under

4 this section shall be issued pursuant to a negotiated rule5 making procedure under subchapter of chapter 5 of such

6 title and the Secretary shall establish a negotiated rule7 making committee for development of any such proposed

8 regulations.

9 SEC. 108. REVIEW OF PLANS.

10 (a) REVIEW.—The Secretary shall conduct a limited

11 review of each community improvement plan submitted to

12 the Secretary to ensure that the plan is complete and com13 plies with the requirements of section 107. The Secretary

14 shall notify each local housing and management authority

15 submitting a plan whether the plan complies with such re16 quirements not later than 60 days after receiving the plan.

17 If the Secretary does not notify the local housing and

18 management authority, as required under this subsection

19 and subsection (b), the plan shall be considered, for pur20 poses of this section, to comply with the requirements

21 under section 107.

22 (b) NOTICE OF REASONS FOR DETERMINATION OF

23 NONCOMPLIANCE.—If the Secretary determines that a

24 plan, as submitted, does not comply with the requirements

25 under section 107, the Secretary shall specify in the notice
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1 under subsection (a) the reasons for the noncompliance

2 and any modifications necessary for the plan to meet the

3 requirements under section 107.

4 (c) STANDARDS FOR DETERMINATION OF NON5 COMPLIANCE.—The Secretary may determine that a plan

6 does not comply with the requirements under section 107

7 only if—

8 (1) the plan is incomplete in significant matters

9 required under such section; or

10 (2) there is evidence available to the Secretary

11 that challenges, in a substantial manner, any infor12 mation provided in the plan.

13 (d) TREATMENT OF EXISTING PLANS.—Notwith14 standing any other provision of this title, a local housing

15 and management authority shall be considered have sub16 mitted a plan under this section if the authority has sub17 mitted to the Secretary a comprehensive plan under sec18 tion 14(e) of the United States Housing Act of 1937 (as

19 in effect immediately before the enactment of this Act)

20 or under the comprehensive improvement assistance pro21 gram under such section 14, and the Secretary has ap22 proved such plan, before January 1, 1994. The Secretary

23 shall provide specific procedures and requirements for

24 such authorities to amend such plans by submitting only
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1 such additional information as is necessary to comply with

2 the requirements of section 107.

3 (e) ACTIONS TO CHANGE PLAN.—A local housing

4 and management authority that has submitted a plan

5 under section 107 may change actions or policies described

6 in the plan before submission and review of the plan of

7 the authority for the next fiscal year only if—

8 (1) in the case of costly or nonroutine changes,

9 the authority submits to the Secretary an amend10 ment to the plan under subsection (f) which is re11 viewed in accordance with such subsection; or

12 (2) in the case of inexpensive or routine

13 changes, the authority describes such changes in

14 such community improvement plan for the next fis15 cal year.

16 (f) AMENDMENTS TO PLAN.—

17 (1) IN GENERAL.—During the annual or 10-

18 year period covered by the plan for a local housing

19 and management authority, the authority may sub20 mit to the Secretary any amendments to the plan.

21 (2) REVIEW.—The Secretary shall conduct a

22 limited review of each proposed amendment submit23 ted under this subsection to determine whether the

24 plan, as amended by the amendment, complies with

25 the requirements of section 107 and notify each local
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1 housing and management authority submitting the

2 amendment whether the plan, as amended, complies

3 with such requirements not later than 30 days after

4 receiving the amendment. If the Secretary deter5 mines that a plan, as amended, does not comply

6 with the requirements under section 107, such notice

7 shall indicate the reasons for the noncompliance and

8 any modifications necessary for the plan to meet the

9 requirements under section 107. If the Secretary

10 does not notify the local housing and management

11 authority as required under this paragraph, the

12 plan, as amended, shall be considered, for purposes

13 of this section, to comply with the requirements

14 under section 107.

15 (3) STANDARDS FOR DETERMINATION OF NON16 COMPLIANCE.—The Secretary may determine that a

17 plan, as amended by a proposed amendment, does

18 not comply with the requirements under section 107

19 only if—

20 (A) the plan, as amended, would be subject

21 to a determination of noncompliance in accord22 ance with the provisions of subsection (c); or

23 (B) the Secretary determines that—
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1 (i) the proposed amendment is plainly

2 inconsistent with the activities specified in

3 the plan; or

4 (ii) there is evidence that challenges,

5 in a substantial manner, any information

6 contained amendment.

7 (4) AMENDMENTS TO EXTEND TIME OF PER8 FORMANCE.—Notwithstanding any other provision of

9 this subsection, the Secretary may not determine

10 that any amendment to the plan of a local housing

11 and management authority that extends the time for

12 performance of activities assisted with amounts pro13 vided under this title fails to comply with the re14 quirements under section 107 if the Secretary has

15 not provided the amount of assistance set forth in

16 the plan or has not provided the assistance in a

17 timely manner.

18 SEC. 109. HEADQUARTERS RESERVE FUND.

19 (a) ANNUAL RESERVATION OF AMOUNTS.—Notwith20 standing any other provision of law, the Secretary may

21 retain not more than 3 percent of the amounts appro22 priated to carry out this Act for any fiscal year.

23 (b) USE OF AMOUNTS.—Any amounts that are re24 tained under subsection (a) shall be available for subse-
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1 quent allocation to specific areas and communities, and

2 may only be used for—

3 (1) unforeseen housing needs resulting from

4 natural and other disasters;

5 (2) housing needs resulting from emergencies,

6 as certified by the Secretary, other than such disas7 ters;

8 (3) housing needs related to a court order or

9 settlement of litigation; and

10 (4) providing technical assistance, training, and

11 electronic information systems for local housing and

12 management authorities to improve management of

13 such authorities.

14 SEC. 110. LABOR STANDARDS.

15 (a) IN GENERAL.—Any contract for grants, sale, or

16 lease pursuant to this Act shall contain the following pro17 visions:

18 (1) OPERATION.—A provision requiring that

19 not less than the wages prevailing in the locality, as

20 determined or adopted (subsequent to a determina21 tion under applicable State or local law) by the Sec22 retary, shall be paid to all architects, technical engi23 neers, draftsmen, and technicians employed in the

24 development, and all maintenance laborers and me-
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1 chanics employed in the operation, of the low-income

2 housing development involved.

3 (2) PRODUCTION.—A provision that not less

4 than the wages prevailing in the locality, as pre5 determined by the Secretary of Labor pursuant to

6 the Davis-Bacon Act (40 U.S.C. 276a–276a–5),

7 shall be paid to all laborers and mechanics employed

8 in the development of the project involved.

9 The Secretary shall require certification as to compliance

10 with the provisions of this section before making any pay11 ment under such contract.

12 (b) EXCEPTIONS.—Subsection (a) and the provisions

13 relating to wages (pursuant to subsection (a)) in any con14 tract for grants, sale, or lease pursuant to this Act, shall

15 not apply to any of the following individuals:

16 (1) VOLUNTEERS.—Any individual who—

17 (A) performs services for which the indi18 vidual volunteered;

19 (B)(i) does not receive compensation for

20 such services; or

21 (ii) is paid expenses, reasonable benefits,

22 or a nominal fee for such services; and

23 (C) is not otherwise employed at any time

24 in the construction work.
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1 (2) RESIDENTS EMPLOYED BY LHMA.—Any

2 resident of a public housing development who is an

3 employee of the local housing and management au4 thority for the development and performs services in

5 connection with the operation or production of a

6 low-income housing project owned or managed by

7 such authority.

8 SEC. 111. NONDISCRIMINATION.

9 (a) IN GENERAL.—No person in the United States

10 shall on the grounds of race, color, national origin, reli11 gion, or sex be excluded from participation in, be denied

12 the benefits of, or be subjected to discrimination under

13 any program or activity funded in whole or in part with

14 amounts made available under this Act. Any prohibition

15 against discrimination on the basis of age under the Age

16 Discrimination Act of 1975 or with respect to an otherwise

17 qualified handicapped individual as provided in section

18 504 of the Rehabilitation Act of 1973 shall also apply to

19 any such program or activity.

20 (b) CIVIL RIGHTS COMPLIANCE.—Each local housing

21 and management authority that receives grant amounts

22 under this Act shall use such amounts and carry out its

23 community improvement plan approved under section 108

24 in conformity with title VI of the Civil Rights Act of 1964,

25 the Fair Housing Act, section 504 of the Rehabilitation
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1 Act of 1973, and the Age Discrimination Act of 1975, and

2 shall affirmatively further fair housing.

3 SEC. 112. EFFECTIVE DATE AND REGULATIONS.

4 (a) EFFECTIVE DATE.—The provisions of this Act

5 and the amendments made by this Act shall take effect

6 and shall apply on the date of the enactment of this Act,

7 unless such provisions or amendments specifically provide

8 for effectiveness or applicability on another date certain.

9 (b) REGULATIONS.—The Secretary may issue any

10 regulations necessary to carry out this Act.

11 (c) RULE OF CONSTRUCTION.—Any failure by the

12 Secretary to issue any regulations authorized under sub13 section (b) shall not affect the effectiveness of any provi14 sion of Act or any amendment made by this Act.

15 TITLE II—PUBLIC HOUSING

16 Subtitle A—Block Grants

17 SEC. 201. BLOCK GRANT CONTRACTS.

18 (a) IN GENERAL.—The Secretary shall enter into

19 contracts with local housing and management authorities

20 under which—

21 (1) the Secretary agrees to make a block grant

22 under this title, in the amount provided under sec23 tion 202(c), for assistance for low-income housing to

24 the local housing and management authority for

25 each fiscal year covered by the contract; and
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1 (2) the authority agrees—

2 (A) to provide safe, clean, and healthy

3 housing that is affordable to low-income fami4 lies and services for families in such housing;

5 (B) to operate, or provide for the oper6 ation, of such housing in a financially sound

7 manner;

8 (C) to use the block grant amounts in ac9 cordance with this title and the community im10 provement plan for the authority that complies

11 with the requirements of section 107;

12 (D) to involve residents of housing assisted

13 with block grant amounts in functions and deci14 sions relating to management and the quality of

15 life in such housing;

16 (E) that the management of the public

17 housing of the authority shall be subject to ac18 tions authorized under subtitle B of title IV;

19 (F) that the Secretary may take actions

20 under section 205 with respect to improper use

21 of grant amounts provided under the contract;

22 and

23 (G) to otherwise comply with the require24 ments under this title.
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1 (b) MODIFICATION.—Contracts and agreements be2 tween the Secretary and a local housing and management

3 authority may not be amended in a manner which would—

4 (1) impair the rights of—

5 (A) leaseholders for units assisted pursu6 ant to a contract or agreement; or

7 (B) the holders of any outstanding obliga8 tions of the local housing and management au9 thority involved for which annual contributions

10 have been pledged; or

11 (2) provide for payment of block grant amounts

12 under this title in an amount exceeding the alloca13 tion for the authority determined under section 204.

14 Any rule of law contrary to this subsection shall be deemed

15 inapplicable.

16 (c) CONDITIONS ON RENEWAL.—Each block grant

17 contract under this section shall provide, as a condition

18 of renewal of the contract with the local housing and man19 agement authority, that the authority’s accreditation be

20 renewed by the Housing Foundation and Accreditation

21 Board pursuant to review under section 434 by such

22 Board.

23 SEC. 202. BLOCK GRANT AUTHORITY AND AMOUNT.

24 (a) AUTHORITY.—The Secretary shall make block

25 grants under this title to eligible local housing and man-
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1 agement authorities in accordance with block grant con2 tracts under section 201.

3 (b) ELIGIBILITY.—A local housing and management

4 authority shall be an eligible local housing and manage5 ment authority with respect to a fiscal year for purposes

6 of this title only if—

7 (1) the Secretary has entered into a block grant

8 contract with the authority;

9 (2) the authority has submitted a community

10 improvement plan to the Secretary for such fiscal

11 year;

12 (3) the Secretary has reviewed the community

13 improvement plan under section 108 and has not no14 tified the authority that the plan fails to comply

15 with the requirements under section 107;

16 (4) the authority is accredited under section

17 434 by the Housing Foundation and Accreditation

18 Board;

19 (5) the authority is exempt from local taxes, as

20 provided under subsection (d), or receives a con21 tribution, as provided under such subsection;

22 (6) no member of the board of directors or

23 other governing body of the authority, or the execu24 tive director, has been convicted of a felony;
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1 (7) the authority has entered into an agreement

2 providing for local cooperation in accordance with

3 section (e); and

4 (8) the authority has not been disqualified for

5 a grant pursuant to section 205(a) or subtitle B of

6 title IV.

7 (c) AMOUNT OF GRANTS.—The amount of the grant

8 under this title for a local housing and management au9 thority for a fiscal year shall be the amount of the alloca10 tion for the authority determined under section 204, ex11 cept as otherwise provided in this title and subtitle B of

12 title IV.

13 (d) PAYMENTS IN LIEU OF STATE AND LOCAL TAX14 ATION OF PUBLIC HOUSING DEVELOPMENTS.—

15 (1) EXEMPTION FROM TAXATION.—A local

16 housing and management authority may receive a

17 block grant under this title only if—

18 (A)(i) the developments of the authority

19 (exclusive of any portions not assisted with

20 amounts provided under this title) are exempt

21 from all real and personal property taxes levied

22 or imposed by the State, city, county, or other

23 political subdivision; and

24 (ii) the local housing and management au25 thority makes payments in lieu of taxes to such
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1 taxing authority equal to 10 percent of the

2 sum, for units charged in the developments of

3 the authority, of the difference between the

4 gross rent and the utility cost, or such lesser

5 amount as is—

6 (I) prescribed by State law;

7 (II) agreed to by the local governing

8 body in its agreement under subsection (e)

9 for local cooperation with the local housing

10 and management authority or under a

11 waiver by the local governing body; or

12 (III) due to failure of a local public

13 body or bodies other than the local housing

14 and management authority to perform any

15 obligation under such agreement; or

16 (B) the authority complies with the re17 quirements under subparagraph (A) with re18 spect to public housing developments, but the

19 authority agrees that the low-income units in

20 any mixed-income developments (as such term

21 is defined in section 221(c)(2)) shall be subject

22 to any otherwise applicable real property taxes

23 imposed by the State, city, county or other po24 litical subdivision.
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1 (2) EFFECT OF FAILURE TO EXEMPT FROM

2 TAXATION.—Notwithstanding paragraph (1), a local

3 housing and management authority that does not

4 comply with the requirements under such paragraph

5 may receive a block grant under this title, but only

6 if the State, city, county, or other political subdivi7 sion in which the development is situated contrib8 utes, in the form of cash or tax remission, the

9 amount by which the taxes paid with respect to the

10 development exceed 10 percent of the gross rent and

11 utility cost charged in the development.

12 (e) LOCAL COOPERATION.—In recognition that there

13 should be local determination of the need for low-income

14 housing to meet needs not being adequately met by private

15 enterprise, the Secretary may not make any grant under

16 this title to a local housing and management authority un17 less the governing body of the locality involved has entered

18 into an agreement with the authority providing for the

19 local cooperation required by the Secretary pursuant to

20 this title.

21 (f) EXCEPTION.—Notwithstanding subsection (a),

22 the Secretary may make a grant under this title for a local

23 housing and management authority that is not an eligible

24 local housing and management authority but only for the

25 period necessary to secure, in accordance with this title,
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1 an alternative local housing and management authority for

2 the public housing of the ineligible authority.

3 SEC. 203. ELIGIBLE AND REQUIRED ACTIVITIES.

4 (a) ELIGIBLE ACTIVITIES.—Except as provided in

5 subsection (b), amounts from a grant made under this title

6 may be used only for the following activities and costs:

7 (1) PRODUCTION.—Production of public hous8 ing developments and any production costs.

9 (2) OPERATION.—Operation of public housing

10 developments in a manner appropriate to ensure the

11 viability of the developments as low-income housing,

12 which shall include providing adequate operating

13 services and reserve funds.

14 (3) MODERNIZATION.—Improvement of the

15 physical condition of existing public housing develop16 ments (including routine and timely improvements,

17 rehabilitation, and replacement of systems, and

18 major rehabilitation, redesign, reconstruction, and

19 redevelopment) and upgrading the management and

20 operation of such developments, to ensure that such

21 developments continue to be available for use as low22 income housing.

23 (4) RESIDENT PROGRAMS.—Provision of social,

24 educational, employment, self-sufficiency, and other

25 services to the residents of public housing develop-
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1 ments, including providing the non-Federal share re2 quired in connection with activities undertaken

3 under Federal grant-in-aid programs.

4 (5) HOMEOWNERSHIP ACTIVITIES.—Activities

5 in connection with a homeownership program for

6 public housing residents under subtitle D, including

7 providing financing or assistance for purchasing

8 housing, or the provision of financial assistance to

9 resident management corporations or resident coun10 cils to obtain training, technical assistance, and edu11 cational assistance to promote homeownership op12 portunities.

13 (6) RESIDENT MANAGEMENT ACTIVITIES.—Ac14 tivities in connection with establishing, organizing,

15 training, and assisting resident councils and resident

16 management corporations for public housing devel17 opments.

18 (7) DEMOLITION AND DISPOSITION ACTIVI19 TIES.—Activities in connection with the disposition

20 or demolition of public housing under section 261.

21 (8) PAYMENTS IN LIEU OF TAXES.—Payments

22 in accordance with the requirement under section

23 202(d)(1).

24 (9) EMERGENCY CORRECTIONS.—Correction of

25 conditions that constitute an immediate threat to the
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1 health or safety of residents of public housing devel2 opments, without regard to whether the need for

3 such correction is indicated in the community im4 provement plan of the authority.

5 (10) PREPARATION OF COMMUNITY IMPROVE6 MENT PLANS.—Preparation of community improve7 ment plans (including reasonable costs that may be

8 necessary to assist residents in participating in the

9 planning process in a meaningful way) and conduct10 ing annual financial and performance audits under

11 section 432.

12 (11) LHMA LIABILITY INSURANCE.—Purchase

13 of insurance covering the potential personal injury li14 ability exposure of local housing and management

15 authorities (and their contractors), except that—

16 (A) any such insurance so purchased shall

17 be competitively selected;

18 (B) any coverage provided under such poli19 cies, as certified by the authority, shall provide

20 reasonable coverage for the risk of liability ex21 posure, taking into consideration the potential

22 liability concerns inherent in the testing and

23 abatement of lead-based paint, and the manage24 rial and quality assurance responsibilities asso25 ciated with the conduct of such activities; and
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1 (C) notwithstanding any other provision of

2 State or Federal law, regulation or other re3 quirement, any line of insurance from a non4 profit insurance entity, owned and controlled by

5 local housing and management authorities and

6 approved by the Secretary, may be purchased

7 without regard to competitive procurement.

8 (12) PAYMENT OF OUTSTANDING DEVELOP9 MENT BONDS AND NOTES ISSUED UNDER 1937

10 ACT.—Payment of principal and interest payable on

11 obligations issued pursuant to the section 5 of the

12 United States Housing Act of 1937 (as in effect be13 fore the date of the enactment of this Act) by a local

14 housing and management authority to finance the

15 production of public housing.

16 (13) MUTUAL HELP HOMEOWNERSHIP OPPOR17 TUNITY PROGRAMS FOR INDIAN HOUSING AUTHORI18 TIES.—In the case of an Indian housing authority,

19 production, operation, and modernization of develop20 ments under a mutual help homeownership program

21 subject to the requirements under section 202 of the

22 United States Housing Act of 1937 (as in effect im23 mediately before the enactment of this Act), except

24 that any reference in such section to assistance

25 under such section or such Act shall be construed to
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1 refer to assistance under this title and subsection (b)

2 of such section shall not apply.

3 (b) REQUIRED CONVERSION OF ASSISTANCE FOR

4 PUBLIC HOUSING TO RENTAL HOUSING ASSISTANCE.—

5 (1) REQUIREMENT.—A local housing and man6 agement authority that receives grant amounts

7 under this title shall use such amounts, to the extent

8 necessary and described in the community improve9 ment plan for the authority, to provide rental hous10 ing assistance under title III in lieu of assisting the

11 operation and modernization of any building or

12 buildings of public housing that meet the require13 ments under paragraph (2).

14 (2) PUBLIC HOUSING SUBJECT TO CONVER15 SION.—Assistance for a building of public housing

16 shall be converted pursuant to paragraph (1) only

17 if—

18 (A) the building is distressed or substan19 tially vacant;

20 (B) the estimated cost of continued oper21 ation and modernization of the building exceeds

22 the cost of providing choice-based rental assist23 ance under title III; and

24 (C) there is a sufficient supply of available

25 and affordable housing to make the use of such
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1 voucher assistance feasible, in the determination

2 of the local housing and management authority.

3 (3) TRANSFER OF AMOUNTS.—A local housing

4 and management authority converting assistance

5 under this subsection shall use assistance received

6 under this title, in the amount provided in the com7 munity improvement plan for the authority, in ac8 cordance with the provisions applicable to amounts

9 received under title III.

10 (c) FUNGIBILITY OF AMOUNTS.—Any amounts pro11 vided under a block grant under this title may be used

12 for any eligible activity under subsection (a) or for conver13 sion under subsection (b), notwithstanding whether such

14 amounts are attributable to the operating allocation under

15 section 204(d)(1) or the capital improvements allocation

16 for the local housing and management authority deter17 mined under section 204(d)(2).

18 (d) COMPLIANCE WITH PLAN.—The community im19 provement plan submitted by a local housing and manage20 ment authority (including any amendments to the plan),

21 unless determined under section 108 not to comply with

22 the requirements under section 107, shall be binding upon

23 the Secretary and the local housing and management au24 thority and the authority shall use any grant amounts pro25 vided under this title for eligible activities under sub-
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1 section (a) in accordance with the plan. This subsection

2 may not be construed to preclude changes or amendments

3 to the plan, as authorized under section 108(e) or any ac4 tions authorized by this Act to be taken without regard

5 to a community improvement plan.

6 SEC. 204. DETERMINATION OF BLOCK GRANT ALLOCATION.

7 (a) IN GENERAL.—For each fiscal year, after reserv8 ing amounts under section 109 from the aggregate

9 amount made available for the fiscal year for carrying out

10 this title, the Secretary shall allocate any remaining

11 amounts among eligible local housing and management

12 authorities in accordance with this section, so that the

13 sum of all of the allocations for all eligible authorities is

14 equal to such remaining amount.

15 (b) ALLOCATION AMOUNT.—The Secretary shall de16 termine the amount of the allocation for each eligible local

17 housing and management authority, which shall be—

18 (1) for any fiscal year beginning after the en19 actment of a law containing a formula described in

20 subsection (c), the amount determined under such

21 formula; or

22 (2) for any fiscal year beginning before the ex23 piration of such period, the sum of—

24 (A) the operating allocation determined

25 under subsection (d)(1) for the authority; and
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1 (B) the capital improvement allocation de2 termined under subsection (d)(2) for the au3 thority.

4 (c) PERMANENT ALLOCATION FORMULA.—

5 (1) FORMULA.—A formula under this sub6 section shall provide for allocating amounts available

7 for a fiscal year for block grants under this title for

8 each local housing and management authority. The

9 formula shall consider factors that reflect the dif10 ferent characteristics and sizes of local housing and

11 management authorities, the relative needs, costs,

12 and capital improvements of authorities, and the rel13 ative costs to authorities of operating a well-man14 aged authority that meets the performance targets

15 for the authority established in the community im16 provement plan for the authority.

17 (2) DEVELOPMENT UNDER NEGOTIATED RULE18 MAKING PROCEDURE.—The formula under this sub19 section shall be developed according to procedures

20 for issuance of regulations under the negotiated

21 rulemaking procedure under subchapter III of chap22 ter 5 of title 5, United States Code, except that the

23 formula shall not be contained in a regulation.

24 (3) REPORT.—Not later than the expiration of

25 the 18-month period beginning upon the enactment
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1 of this Act, the Secretary shall submit a report to

2 the Congress containing the proposed formula estab3 lished pursuant to paragraph (2) that meets the re4 quirements of this subsection.

5 (d) INTERIM ALLOCATION REQUIREMENTS.—

6 (1) OPERATING ALLOCATION.—

7 (A) APPLICABILITY TO 50 PERCENT OF AP8 PROPRIATED AMOUNTS.—Of any amounts avail9 able for allocation under this subsection for a

10 fiscal year, 50 percent shall be used only to pro11 vide amounts for operating allocations under

12 this paragraph for eligible local housing and

13 management authorities.

14 (B) DETERMINATION.—The operating allo15 cation under this subsection for a local housing

16 and management authority for a fiscal year

17 shall be an amount determined by applying, to

18 the amount to be allocated under this para19 graph, the formula used for determining the

20 distribution of operating subsidies for fiscal

21 year 1995 to public housing agencies (as modi22 fied under subparagraph (C)) under section 9

23 of this Act, as in effect before the enactment of

24 this Act.
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1 (C) TREATMENT OF CHRONICALLY VACANT

2 UNITS.—The Secretary shall revise the formula

3 referred to in subparagraph (B) so that the for4 mula does not provide any amounts attributable

5 to any dwelling unit of a local housing and

6 management authority that has been vacant

7 continuously for 6 or more months. A unit shall

8 not be considered vacant for purposes of this

9 paragraph if the unit is unoccupied because of

10 rehabilitation or renovation that is on-schedule.

11 (2) CAPITAL IMPROVEMENT ALLOCATION.—

12 (A) APPLICABILITY TO 50 PERCENT OF AP13 PROPRIATED AMOUNTS.—Of any amounts avail14 able for allocation under this subsection for a

15 fiscal year, 50 percent shall be used only to pro16 vide amounts for capital improvement alloca17 tions under this paragraph for eligible local

18 housing and management authorities.

19 (B) DETERMINATION.—The capital im20 provement allocation under this subsection for

21 an eligible local housing and management au22 thority for a fiscal year shall be determined by

23 applying, to the amount to be allocated under

24 this paragraph, the formula used for determin25 ing the distribution of modernization assistance
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1 for fiscal year 1995 to public housing agencies

2 under section 14 of this Act, as in effect before

3 the enactment of this Act, except that Secretary

4 shall establish a method for taking into consid5 eration allocation of amounts under the com6 prehensive improvement assistance program.

7 SEC. 205. SANCTIONS FOR IMPROPER USE OF AMOUNTS.

8 (a) IN GENERAL.—In addition to any other actions

9 authorized under this title, if the Secretary finds pursuant

10 to an annual financial and performance audit under sec11 tion 432 that a local housing and management authority

12 receiving grant amounts under this title has failed to com13 ply substantially with any provision of this title, the Sec14 retary may—

15 (1) terminate payments under this title to the

16 authority;

17 (2) withhold from the authority amounts from

18 the total allocation for the authority pursuant to sec19 tion 204;

20 (3) reduce the amount of future grant pay21 ments under this title to the authority by an amount

22 equal to the amount of such payments that were not

23 expended in accordance with this title;

24 (4) limit the availability of grant amounts pro25 vided to the authority under this title to programs,
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•HR 2406 IH

1 projects, or activities not affected by such failure to

2 comply;

3 (5) withhold from the authority amounts allo4 cated for the authority under title III; or

5 (6) order other corrective action with respect to

6 the authority.

7 (b) TERMINATION OF COMPLIANCE ACTION.—If the

8 Secretary takes action under subsection (a) with respect

9 to a local housing and management authority, the Sec10 retary shall—

11 (1) in the case of action under subsection

12 (a)(1), resume payments of grant amounts under

13 this title to the authority in the full amount of the

14 total allocation under section 204 for the authority

15 at time that the Secretary first determines that the

16 authority will comply with the provisions of this title;

17 (2) in the case of action under paragraph (2),

18 (5), or (6) of subsection (a), make withheld amounts

19 available as the Secretary considers appropriate to

20 ensure that the authority complies with the provi21 sions of this title; or

22 (3) in the case of action under subsection

23 (a)(4), release such restrictions at the time that the

24 Secretary first determines that the authority will

25 comply with the provisions of this title.
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1 Subtitle B—Admissions and

2 Occupancy Requirements

3 SEC. 221. LOW-INCOME HOUSING REQUIREMENT.

4 (a) PRODUCTION ASSISTANCE.—Any public housing

5 produced using amounts provided under a grant under

6 this title or under the United States Housing Act of 1937

7 shall be operated as public housing for the 40-year period

8 beginning upon such production.

9 (b) OPERATING ASSISTANCE.—No portion of any

10 public housing development operated with amounts from

11 a grant under this title or operating assistance provided

12 under the United States Housing Act of 1937 may be dis13 posed of before the expiration of the 10-year period begin14 ning upon the conclusion of the fiscal year for which the

15 grant or such assistance was provided.

16 (c) CAPITAL IMPROVEMENTS ASSISTANCE.—

17 Amounts may be used for eligible activities under section

18 203(a)(3) only for the following housing developments:

19 (1) LOW-INCOME DEVELOPMENTS.—Amounts

20 may be used for a low-income housing development

21 that—

22 (A) is owned by local housing and manage23 ment authorities;
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1 (B) is operated as low-income rental hous2 ing and produced or operated with assistance

3 provided under a grant under this title; and

4 (C) is consistent with the purposes of this

5 title.

6 Any development, or portion thereof, referred to in

7 this paragraph for which activities under section

8 203(a)(3) are conducted using amounts from a

9 grant under this title shall be maintained and used

10 as public housing for the 20-year period beginning

11 upon the receipt of such grant. Any public housing

12 development, or portion thereof, that received the

13 benefit of a grant pursuant to section 14 of the

14 United States Housing Act of 1937 shall be main15 tained and used as public housing for the 20-year

16 period beginning upon receipt of such amounts.

17 (2) MIXED INCOME DEVELOPMENTS.—Amounts

18 may be used for mixed-income developments, which

19 shall be a housing development that—

20 (A) contains dwelling units that are avail21 able for occupancy by families other than low22 income families;

23 (B) contains a number of dwelling units

24 that are made available (by master contract or

25 individual lease) for occupancy, for a period of
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1 not less than 15 years, only by very low-income

2 families identified by the local housing and

3 management authority, which number is not

4 less than—

5 (i) the number that bears the same

6 ratio to the total number of units in the

7 development as the value of the financial

8 assistance provided to the development

9 with grant amounts under this title bears

10 to the value of the total equity investment

11 in the development, as determined by the

12 local housing and management authority;

13 or

14 (ii) the number of public housing

15 dwelling units that could have been devel16 oped by the authority with the amount of

17 such assistance provided; and

18 (C) is owned by—

19 (i) the local housing and management

20 authority or an affiliate controlled by it;

21 (ii) a partnership, limited liability

22 company, or other legal entity in which the

23 local housing and management authority

24 (or an entity controlled by such authority)

25 is a general or limited partner or a general
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1 or limited managing member, or otherwise

2 has a significant participation in directing

3 the activities of such entity; or

4 (iii) an entity that grants to the local

5 housing and management authority an op6 tion to purchase the housing development,

7 for a price specified in section 42 of the

8 Internal Revenue Code of 1986, which may

9 be exercised during the 15-year period be10 ginning upon initial occupancy.

11 SEC. 222. FAMILY INCOME ELIGIBILITY.

12 (a) IN GENERAL.—Dwelling units in public housing

13 may be rented only to families who are low-income families

14 at the time of their initial occupancy of such units.

15 (b) INCOME MIX WITHIN DEVELOPMENTS.—A local

16 housing and management authority may establish and uti17 lize income-mix criteria for the selection of residents for

18 dwelling units in public housing developments that limit

19 admission to a development by selecting applicants having

20 incomes appropriate so that the mix of incomes of families

21 occupying the development is proportional to the income

22 mix in the eligible population of the jurisdiction of the au23 thority, as adjusted to take into consideration the severity

24 of housing need.
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1 (c) WAIVER OF ELIGIBILITY REQUIREMENTS FOR

2 OCCUPANCY BY POLICE OFFICERS.—To provide occu3 pancy in public housing dwelling units to police officers

4 and other law enforcement or security personnel (who are

5 not otherwise eligible for residence in public housing) to

6 increase security for other public housing residents in de7 velopments where crime has been a problem, a local hous8 ing and management authority may, with respect to such

9 units—

10 (1) waive—

11 (A) the provisions of subsection (a) of this

12 section and section 225(a);

13 (B) the applicability of—

14 (i) any preferences for occupancy es15 tablished under section 223;

16 (ii) the maximum and minimum rent17 al amounts established pursuant to section

18 225(b);

19 (iii) any criteria relating to project in20 come mix established under subsection (b);

21 and

22 (iv) any other occupancy limitations

23 or requirements; and

24 (2) establish special rent requirements and

25 other terms and conditions of occupancy.
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1 SEC. 223. PREFERENCES FOR OCCUPANCY.

2 (a) AUTHORITY TO ESTABLISH.—Any local housing

3 and management authority may establish a system for

4 making dwelling units in public housing available for occu5 pancy that provides preference for such occupancy to fam6 ilies having certain characteristics.

7 (b) CONTENT.—Each system of preferences estab8 lished pursuant to this section shall be based upon local

9 housing needs and priorities, as determined by the local

10 housing and management authority.

11 SEC. 224. ADMISSION PROCEDURES.

12 (a) ADMISSION REQUIREMENTS.—A local housing

13 and management authority shall ensure that each family

14 residing in a public housing development owned or admin15 istered by the authority is admitted in accordance with

16 the procedures established under this title by the authority

17 and the income limits under section 222.

18 (b) AVAILABILITY OF CRIMINAL RECORDS.—Not19 withstanding any other provision of Federal, State, or

20 local law, upon the request of any local housing and man21 agement authority, the National Crime Information Cen22 ter, police departments, and any other law enforcement

23 entities shall provide information to the authority regard24 ing the criminal convictions of applicants for, or residents

25 of, public housing for the purpose of applicant screening,

26 lease enforcement, and eviction. A local housing and man-
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1 agement authority may pay a reasonable fee for such in2 formation.

3 (c) NOTIFICATION OF APPLICATION DECISIONS.—A

4 local housing and management authority shall establish

5 procedures designed to provide for notification to an appli6 cant for admission to public housing of the determination

7 with respect to such application, the basis for the deter8 mination, and, if the applicant is determined to be eligible

9 for admission, the projected date of occupancy (to the ex10 tent such date can reasonably be determined).

11 SEC. 225. FAMILY RENTAL PAYMENT.

12 (a) RENTAL CONTRIBUTION BY RESIDENT.—A fam13 ily shall pay as monthly rent for a dwelling unit in public

14 housing the amount that the local housing and manage15 ment authority determines is appropriate with respect to

16 the family and the unit, which shall be—

17 (1) based upon factors determined by the au18 thority, which may include the adjusted income of

19 the resident, type and size of dwelling unit, operat20 ing and other expenses of the authority, or any other

21 factors that the authority considers appropriate; and

22 (2) an amount that is not less than the mini23 mum monthly rental amount nor more than the

24 maximum monthly rental amount established for the

25 dwelling unit pursuant to subsection (b).
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1 In determining the amount of the rent charged for a dwell2 ing unit, a local housing and management authority shall

3 take into consideration the characteristics of the popu4 lation served by the authority, the goals of the community

5 improvement plan for the authority, and the goals under

6 the comprehensive housing affordability strategy under

7 section 105 of the Cranston-Gonzalez National Affordable

8 Housing Act for the applicable jurisdiction.

9 (b) ALLOWABLE RENTS.—Each local housing and

10 management authority shall establish, for each dwelling

11 unit in public housing owned or administered by the au12 thority, a maximum and minimum monthly rental amount,

13 as follows:

14 (1) MAXIMUM RENTAL.—The maximum month15 ly rental amount for a unit shall be an amount de16 termined by the authority which is based on, but

17 does not exceed—

18 (A) the average, for dwelling units of simi19 lar size in public housing developments owned

20 and operated by such authority, of operating

21 expenses attributable to and reasonable reserves

22 for such units;

23 (B) the reasonable rental value of the unit;

24 or
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1 (C) the local market rent for comparable

2 units of similar size.

3 (2) MINIMUM RENTAL.—The minimum monthly

4 rental amount for a unit may not be less than $50.

5 (c) INCOME REVIEWS.—If a local housing and man6 agement authority establishes the amount of rent paid by

7 a family for a public housing dwelling unit based on the

8 adjusted income of the family, the authority shall review

9 the incomes of such family occupying dwelling units in

10 public housing owned or administered by the authority not

11 less than—

12 (1) once every 3 years, in the cases of elderly

13 families and disabled families; and

14 (2) annually, in the case of nonelderly families.

15 SEC. 226. LEASE REQUIREMENTS.

16 In renting dwelling units in a public housing develop17 ment, each local housing and management authority shall

18 utilize leases that—

19 (1) do not contain unreasonable terms and con20 ditions;

21 (2) obligate the local housing and management

22 authority to maintain the development in compliance

23 with the housing quality requirements under section

24 233;
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1 (3) require the local housing and management

2 authority to give adequate written notice of termi3 nation of the lease, which shall not be less than—

4 (A) the period provided under the applica5 ble law of the jurisdiction or 14 days, whichever

6 is less, when the health or safety of other resi7 dents or local housing and management author8 ity employees is threatened or in the case of

9 nonpayment of rent; and

10 (B) the period of time provided under the

11 applicable law of the jurisdiction, in any other

12 case;

13 (4) require that the local housing and manage14 ment authority may not terminate the tenancy ex15 cept for violation of the terms or conditions of the

16 lease, violation of applicable Federal, State, or local

17 law, or for other good cause;

18 (5) provide that any activity, engaged in by a

19 public housing resident, any member of the resi20 dent’s household, or any guest or other person under

21 the resident’s control, that—

22 (A) threatens the health or safety of, or

23 right to peaceful enjoyment of the premises by,

24 other residents or employees of the local hous-
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1 ing and management authority or other man2 ager of the housing,

3 (B) threatens the health or safety of, or

4 right to peaceful enjoyment of their premises

5 by, persons residing in the immediate vicinity of

6 the premises, or

7 (C) is criminal activity (including drug-re8 lated criminal activity),

9 shall, regardless of whether the resident had actual

10 knowledge of such activity, be cause for termination

11 of tenancy; and

12 (6) specify that, with respect to any notice of

13 eviction or termination, notwithstanding any State

14 law, a public housing resident shall be informed of

15 the opportunity, prior to any hearing or trial, to ex16 amine any relevant documents, records or regula17 tions directly related to the eviction or termination.

18 SEC. 227. DESIGNATED HOUSING FOR ELDERLY AND DIS19 ABLED FAMILIES.

20 (a) AUTHORITY TO PROVIDE DESIGNATED HOUS21 ING.—

22 (1) IN GENERAL.—Subject only to provisions of

23 this subsection, a local housing and management au24 thority provide public housing developments (or por25 tions of developments) designated for occupancy by
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1 (A) only elderly families, (B) only disabled families,

2 or (C) elderly and disabled families.

3 (2) PRIORITY FOR OCCUPANCY.—In determin4 ing priority for admission to public housing develop5 ments (or portions of developments) that are des6 ignated for occupancy as provided in paragraph (1),

7 the local housing and management authority may

8 make units in such developments (or portions) avail9 able only to the types of families for whom the devel10 opment is designated.

11 (3) ELIGIBILITY OF NEAR-ELDERLY FAMI12 LIES.—If a local housing and management authority

13 determines that there are insufficient numbers of el14 derly families to fill all the units in a development

15 (or portion of a development) designated under

16 paragraph (1) for occupancy by only elderly families,

17 the authority may provide that near-elderly families

18 may occupy dwelling units in the development (or

19 portion).

20 (b) PROHIBITION OF EVICTIONS.—Any resident who

21 is lawfully residing in a dwelling unit in the development

22 may not be evicted or otherwise required to vacate such

23 unit because of the designation of the development (or por24 tion of a development) or because of any action taken by
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1 the Secretary or any local housing and management au2 thority to carry out this section.

3 (c) RELOCATION ASSISTANCE.—A local housing and

4 management authority that designates any existing devel5 opment or building, or portion thereof, for occupancy as

6 provided under subsection (a) shall provide, to each person

7 and family relocated in connection with such designa8 tion—

9 (1) notice of the designation and relocation, as

10 soon as is practicable for the authority and the per11 son or family;

12 (2) comparable housing (including appropriate

13 services and design features), which may include

14 rental assistance under title III, at a rental rate that

15 is comparable to that applicable to the unit from

16 which the person or family has vacated; and

17 (3) payment of actual, reasonable moving ex18 penses.

19 (d) REQUIRED INCLUSIONS IN COMMUNITY IM20 PROVEMENT PLAN.—

21 (1) IN GENERAL.—A local housing and manage22 ment authority may designate a development (or

23 portion of a development) for occupancy under sub24 section (a)(1) only if the authority, as part of the

25 authority’s community improvement plan—
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1 (A) establishes that the designation of the

2 development is necessary—

3 (i) to achieve the housing goals for

4 the jurisdiction under the comprehensive

5 housing affordability strategy under sec6 tion 105 of the Cranston-Gonzalez Na7 tional Affordable Housing Act; and

8 (ii) to meet the housing needs of the

9 low-income population jurisdiction; and

10 (B) submits a description of—

11 (i) the development (or portion of a

12 development) to be designated;

13 (ii) the types of residents for which

14 the development is to be designated;

15 (iii) any supportive services to be pro16 vided to residents of the designated devel17 opment (or portion);

18 (iv) how the authority will secure any

19 additional resources or housing assistance

20 that is necessary to provide assistance to

21 nonelderly disabled families that would

22 have been housed if occupancy in develop23 ment were not restricted pursuant to this

24 section; and
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1 (v) how the design and related facili2 ties (as such term is defined in section

3 202(d)(8) of the Housing Act of 1959) of

4 the development accommodate the special

5 environmental needs of the intended occu6 pants.

7 (2) EFFECTIVENESS.—The information re8 quired under paragraph (1) shall be effective for

9 purposes of designation of a public housing develop10 ment (or portion thereof) under this section only for

11 the 2-year period that begins upon submission of the

12 information to the Secretary. A local housing and

13 management authority may extend the effectiveness

14 of the designation and information for an additional

15 2-year period beginning upon the expiration of such

16 period (or the expiration of any previous extension

17 period under this sentence) by updating such infor18 mation in the community improvement plan for the

19 authority.

20 (3) SUPPORTIVE SERVICES.—For purposes of

21 this subsection, the term ‘‘supportive services’’

22 means services designed to meet the special needs of

23 residents.

24 (e) INAPPLICABILITY OF UNIFORM RELOCATION AS25 SISTANCE AND REAL PROPERTY ACQUISITIONS POLICY
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1 ACT OF 1970.—No resident of a public housing develop2 ment shall be considered to be displaced for purposes of

3 the Uniform Relocation Assistance and Real Property Ac4 quisitions Policy Act of 1970 because of the designation

5 of any existing development or building, or portion thereof,

6 for occupancy as provided under subsection (a) of this

7 section.

8 (f) INAPPLICABILITY TO INDIAN HOUSING.—The

9 provisions of this section shall not apply with respect to

10 low-income housing developed or operated pursuant to a

11 contract between the Secretary and an Indian housing au12 thority.

13 Subtitle C—Management

14 SEC. 231. MANAGEMENT PROCEDURES.

15 (a) SOUND MANAGEMENT.—A local housing and

16 management authority that receives grant amounts under

17 this title shall establish and comply with procedures and

18 practices sufficient to ensure that the public housing de19 velopments owned or administered by the authority are op20 erated in a sound manner.

21 (b) MANAGEMENT BY OTHER ENTITIES.—Except as

22 otherwise provided under this Act, a local housing and

23 management authority may contract with any other entity

24 to perform any of the management functions for public
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1 housing owned or operated by the local housing and man2 agement authority.

3 SEC. 232. ADMINISTRATIVE GRIEVANCE PROCEDURE.

4 (a) IN GENERAL.—Each local housing and manage5 ment authority receiving assistance under this title shall

6 establish and implement an administrative grievance pro7 cedure under which public housing residents will have an

8 opportunity for disposition of resident grievances concern9 ing adverse actions of the local housing and management

10 authority.

11 (b) EXCLUSION OF GRIEVANCES CONCERNING EVIC12 TIONS FROM ADMINISTRATIVE PROCEDURE.—A local

13 housing and management authority shall exclude from its

14 procedure established under subsection (a) any grievance

15 concerning an eviction or termination of tenancy in any

16 State which requires that, prior to eviction, a resident be

17 provided a hearing in court which the Secretary deter18 mines provides the basic elements of due process.

19 SEC. 233. HOUSING QUALITY REQUIREMENTS.

20 (a) IN GENERAL.—Each local housing and manage21 ment authority that receives grant amounts under this Act

22 shall maintain its public housing in a condition that com23 plies—

24 (1) in the case of public housing located in a ju25 risdiction which has in effect laws, regulations,
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1 standards, or codes regarding habitability of residen2 tial dwellings that provide protection to residents of

3 the dwellings that is equal to or greater than the

4 protection provided under the housing quality stand5 ards established under subsection (b), with such ap6 plicable laws, regulations, standards, or codes; or

7 (2) in the case of public housing located in a ju8 risdiction which does not have in effect laws, regula9 tions, standards, or codes described in subparagraph

10 (A), with the housing quality standards established

11 under subsection (b).

12 (b) FEDERAL HOUSING QUALITY STANDARDS.—The

13 Secretary shall establish housing quality standards under

14 this subsection that ensure that public housing dwelling

15 units are safe, clean, and healthy. Such standards shall

16 include requirements relating to habitability, including

17 maintenance, health and sanitation factors, condition, and

18 construction of dwellings, and shall, to the greatest extent

19 practicable, be consistent with the standards established

20 under section 328(b). The Secretary shall differentiate be21 tween major and minor violations of such standards.

22 (c) DETERMINATIONS.—Each local housing and man23 agement authority providing housing assistance shall iden24 tify, in the community improvement plan of the authority,

25 whether the authority is utilizing the standard under para-
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1 graph (1) or (2) and, if the authority utilizes the standard

2 under paragraph (1), shall certify in such plan that the

3 applicable State or local laws, regulations, standards, or

4 codes comply with the requirements under such para5 graph.

6 (d) ANNUAL INSPECTIONS.—Each local housing and

7 management authority that owns or operates public hous8 ing shall make an annual inspection of each public housing

9 development to determine whether units in the develop10 ment are maintained in accordance with the requirements

11 under subsection (a)(2). The authority shall submit the

12 results of such inspections to the Secretary and the In13 spector General for the Department of Housing and

14 Urban Development and such results shall be available to

15 the Housing Foundation and Accreditation Board estab16 lished under title IV and any auditor conducting an audit

17 under section 432.

18 SEC. 234. EMPLOYMENT OF RESIDENTS.

19 A local housing and management authority may em20 ploy public housing residents in any activities engaged in

21 by the authority.

22 SEC. 235. RESIDENT COUNCILS AND RESIDENT MANAGE23 MENT CORPORATIONS.

24 (a) RESIDENT COUNCILS.—The residents of a public

25 housing development may establish a resident council for
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1 the development for purposes of consideration of issues re2 lating to residents, representation of resident interests,

3 and coordination and consultation with a local housing

4 and management authority. A resident council shall be an

5 organization or association that—

6 (1) is nonprofit in character;

7 (2) is representative of the residents of the eli8 gible housing;

9 (3) adopts written procedures providing for the

10 election of officers on a regular basis; and

11 (4) has a democratically elected governing

12 board, which is elected by the residents of the eligi13 ble housing.

14 (b) RESIDENT MANAGEMENT CORPORATIONS.—

15 (1) ESTABLISHMENT.—The residents of a pub16 lic housing development may establish a resident

17 management corporation for the purpose of assum18 ing the responsibility for the management of the de19 velopment under section 236 or purchasing a devel20 opment.

21 (2) REQUIREMENTS.—A resident management

22 corporation shall be a corporation that—

23 (A) is nonprofit in character;

24 (B) is organized under the laws of the

25 State in which the development is located;
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1 (C) has as its sole voting members the

2 residents of the development; and

3 (D) is established by the resident council

4 for the development or, if there is not a resident

5 council, by a majority of the households of the

6 development.

7 SEC. 236. MANAGEMENT BY RESIDENT MANAGEMENT COR8 PORATION.

9 (a) AUTHORITY.—A local housing and management

10 authority may enter into a contract under this section with

11 a resident management corporation to provide for the

12 management of public housing developments by the cor13 poration.

14 (b) CONTRACT.—A contract under this section for

15 management of public housing developments by a resident

16 management corporation shall establish the respective

17 management rights and responsibilities of the corporation

18 and the local housing and management authority. The

19 contract shall be consistent with the requirements of this

20 Act applicable to public housing development and may in21 clude specific terms governing management personnel and

22 compensation, access to public housing records, submis23 sion of and adherence to budgets, rent collection proce24 dures, resident income verification, resident eligibility de25 terminations, resident eviction, the acquisition of supplies
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1 and materials and such other matters as may be appro2 priate. The contract shall be treated as a contracting out

3 of services.

4 (c) BONDING AND INSURANCE.—Before assuming

5 any management responsibility for a public housing devel6 opment, the resident management corporation shall pro7 vide fidelity bonding and insurance, or equivalent protec8 tion. Such bonding and insurance, or its equivalent, shall

9 be adequate to protect the Secretary and the local housing

10 and management authority against loss, theft, embezzle11 ment, or fraudulent acts on the part of the resident man12 agement corporation or its employees.

13 (d) BLOCK GRANT ASSISTANCE AND INCOME.—A

14 contract under this section shall provide for—

15 (1) the local housing and management author16 ity to provide a portion of the block grant assistance

17 under this title to the resident management corpora18 tion for purposes of operating the public housing de19 velopment covered by the contract and performing

20 such other eligible activities with respect to the de21 velopment as may be provided under the contract;

22 (2) the amount of income expected to be de23 rived from the development itself (from sources such

24 as rents and charges);
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1 (3) the amount of income to be provided to the

2 development from the other sources of income of the

3 local housing and management authority (such as

4 interest income, administrative fees, and rents); and

5 (4) any income generated by a resident man6 agement corporation of a public housing develop7 ment that exceeds the income estimated under the

8 contract shall be used for eligible activities under

9 section 203(a).

10 (e) CALCULATION OF TOTAL INCOME.—

11 (1) MAINTENANCE OF SUPPORT.—Subject to

12 paragraph (2), the amount of assistance provided by

13 a local housing and management authority to a pub14 lic housing development managed by a resident man15 agement corporation may not be reduced during the

16 3-year period beginning on the date on which the

17 resident management corporation is first established

18 for the development.

19 (2) REDUCTIONS AND INCREASES IN SUP20 PORT.—If the total income of a local housing and

21 management authority is reduced or increased, the

22 income provided by the local housing and manage23 ment authority to a public housing development

24 managed by a resident management corporation

25 shall be reduced or increased in proportion to the re-
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1 duction or increase in the total income of the au2 thority, except that any reduction in block grant

3 amounts under this title to the authority that occurs

4 as a result of fraud, waste, or mismanagement by

5 the authority shall not affect the amount provided to

6 the resident management corporation.

7 SEC. 237. TRANSFER OF MANAGEMENT OF CERTAIN HOUS8 ING TO INDEPENDENT MANAGER AT RE9 QUEST OF RESIDENTS.

10 (a) AUTHORITY.—The Secretary may transfer the re11 sponsibility and authority for management of specified

12 housing (as such term is defined in subsection (h)) from

13 a local housing and management authority to an eligible

14 management entity, in accordance with the requirements

15 of this section, if—

16 (1) such housing is owned or operated by a

17 local housing and management authority that is—

18 (A) not accredited under section 434 by

19 the Housing Foundation and Accreditation

20 Board; or

21 (B) is designated as a troubled authority

22 under section 431(a)(2);

23 (2) the Secretary determines that—

24 (A) such housing has deferred mainte25 nance, physical deterioration, or obsolescence of
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1 major systems and other deficiencies in the

2 physical plant of the project;

3 (B) such housing is occupied predomi4 nantly by families with children who are in a

5 severe state of distress, characterized by such

6 factors as high rates of unemployment, teenage

7 pregnancy, single-parent households, long-term

8 dependency on public assistance and minimal

9 educational achievement;

10 (C) such housing is located in an area such

11 that the housing is subject to recurrent vandal12 ism and criminal activity (including drug-relat13 ed criminal activity); and

14 (D) the elements of distress for such hous15 ing specified in subparagraphs (A) through (C)

16 can be remedied through improved management

17 and reasonable expenses for modernization.

18 Such a transfer may be made only as provided in this sec19 tion, pursuant to the approval by the Secretary of a re20 quest for the transfer made by a majority vote of the resi21 dent council for the specified housing, after consultation

22 with the local housing and management authority for the

23 specified housing.

24 (b) BLOCK GRANT ASSISTANCE.—Pursuant to a con25 tract under subsection (c), the Secretary shall require the
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1 local housing and management authority for specified

2 housing to provide to the manager for the housing, from

3 any block grant amounts under this title for the authority,

4 fair and reasonable amounts for operating costs for the

5 housing. The amount made available under this subsection

6 to a manager shall be determined by the Secretary based

7 on the share for the specified housing of the total block

8 grant amounts for the local housing and management au9 thority transferring the housing, taking into consideration

10 the operating and capital improvement needs of the speci11 fied housing, the operating and capital improvement needs

12 of the remaining public housing units managed by the

13 local housing and management authority, and the commu14 nity improvement plan of such authority.

15 (c) CONTRACT BETWEEN SECRETARY AND MAN16 AGER.—

17 (1) REQUIREMENTS.—Pursuant to the approval

18 of a request under this section for transfer of the

19 management of specified housing, the Secretary shall

20 enter into a contract with the eligible management

21 entity identified in the request to transfer the re22 sponsibilities and authority for management of the

23 housing to such entity.

24 (2) TERMS.— A contract under this subsection

25 shall contain provisions establishing the rights and
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1 responsibilities of the manager with respect to the

2 specified housing and the Secretary and shall be

3 consistent with the requirements of this Act applica4 ble to public housing developments.

5 (d) COMPLIANCE WITH COMMUNITY IMPROVEMENT

6 PLAN.—A manager of specified housing under this section

7 shall comply with the approved community improvement

8 plan applicable to the housing and shall submit such infor9 mation to the local housing and management authority

10 from which management was transferred as may be nec11 essary for such authority to prepare and update its com12 munity improvement plan.

13 (e) DEMOLITION AND DISPOSITION BY MANAGER.—

14 A manager under this section may demolish or dispose of

15 specified housing only if, and in the manner, provided for

16 in the community improvement plan for the authority

17 transferring management of the housing.

18 (f) LIMITATION ON LHMA LIABILITY.—A local hous19 ing and management authority that is not a manager for

20 specified housing shall not be liable for any act or failure

21 to act by a manager or resident council for the specified

22 housing.

23 (g) TREATMENT OF MANAGER.—To the extent not

24 inconsistent with this section and to the extent the Sec25 retary determines not inconsistent with the purposes of
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1 this Act, a manager of specified housing under this section

2 shall be considered to be a local housing and management

3 authority for purposes of this title.

4 (h) DEFINITIONS.—For purposes of this section, the

5 following definitions shall apply:

6 (1) ELIGIBLE MANAGEMENT ENTITY.—The

7 term ‘‘eligible management entity’’ means, with re8 spect to any public housing development, any of the

9 following entities that has been accredited in accord10 ance with section 434:

11 (A) NONPROFIT ORGANIZATION.—A public

12 or private nonprofit organization, which shall—

13 (i) include a resident management

14 corporation and, as determined by the Sec15 retary, a public or private nonprofit orga16 nization sponsored by the local housing

17 and management authority that owns the

18 development; and

19 (ii) not include the local housing and

20 management authority that owns the devel21 opment.

22 (B) FOR-PROFIT ENTITY.—A for-profit en23 tity that has demonstrated experience in provid24 ing low-income housing.
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1 (C) STATE OR LOCAL GOVERNMENT.—A

2 State or local government, including an agency

3 or instrumentality thereof.

4 (D) LOCAL HOUSING AND MANAGEMENT

5 AUTHORITY.—A local housing and management

6 authority (other than the local housing and

7 management authority that owns the develop8 ment).

9 The term does not include a resident council.

10 (2) MANAGER.—The term ‘‘manager’’ means

11 any eligible management entity that has entered into

12 a contract under this section with the Secretary for

13 the management of specified housing.

14 (3) NONPROFIT.—The term ‘‘nonprofit’’ means,

15 with respect to an organization, association, corpora16 tion, or other entity, that no part of the net earnings

17 of the entity inures to the benefit of any member,

18 founder, contributor, or individual.

19 (4) PRIVATE NONPROFIT ORGANIZATION.—The

20 term ‘‘private nonprofit organization’’ means any

21 private organization (including a State or locally

22 chartered organization) that—

23 (A) is incorporated under State or local

24 law;

25 (B) is nonprofit in character;
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1 (C) complies with standards of financial

2 accountability acceptable to the Secretary; and

3 (D) has among its purposes significant ac4 tivities related to the provision of decent hous5 ing that is affordable to low-income families.

6 (5) LOCAL HOUSING AND MANAGEMENT AU7 THORITY.—The term ‘‘local housing and manage8 ment authority’’ has the meaning given such term in

9 section 103(a), except that it does not include In10 dian housing authorities.

11 (6) PUBLIC NONPROFIT ORGANIZATION.—The

12 term ‘‘public nonprofit organization’’ means any

13 public entity that is nonprofit in character.

14 (7) SPECIFIED HOUSING.—The term ‘‘specified

15 housing’’ means a public housing development or de16 velopments, or a portion of a development or devel17 opments, for which the transfer of management is

18 requested under this section. The term includes one

19 or more contiguous buildings and an area of contig20 uous row houses, but in the case of a single building,

21 the building shall be sufficiently separable from the

22 remainder of the development of which it is part to

23 make transfer of the management of the building

24 feasible for purposes of this section.
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1 Subtitle D—Homeownership

2 SEC. 251. RESIDENT HOMEOWNERSHIP PROGRAMS.

3 (a) IN GENERAL.—A local housing and management

4 authority may carry out a homeownership program in ac5 cordance with this section and the community improve6 ment plan of the authority to make public housing dwell7 ing units, public housing developments, and other housing

8 projects available for purchase by low-income families.

9 (b) PARTICIPATING UNITS.—A program under this

10 section may cover any existing public housing dwelling

11 units or projects, and may include other dwelling units and

12 housing owned, operated, or assisted, or otherwise ac13 quired for use under such program, by the local housing

14 and management authority.

15 (c) ELIGIBLE PURCHASERS.—

16 (1) LOW-INCOME REQUIREMENT.—Only low-in17 come families assisted by a local housing and man18 agement authority and other low-income families

19 shall be eligible to purchase housing under a home20 ownership program under this section.

21 (2) OTHER REQUIREMENTS.—A local housing

22 and management authority may establish other re23 quirements or limitations for families to purchase

24 housing under a homeownership program under this

25 section, including requirements or limitations re-
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1 garding employment or participation in employment

2 counseling or training activities, criminal activity,

3 participation in homeownership counseling pro4 grams, evidence of regular income, and other re5 quirements.

6 (d) FINANCING AND ASSISTANCE.—A homeownership

7 program under this section may provide financing for ac8 quisition of housing by families purchasing under the pro9 gram or by the local housing and management authority

10 for sale under this program in any manner considered ap11 propriate by the authority (including sale to a resident

12 management corporation).

13 (e) DOWNPAYMENT REQUIREMENT.—Each family

14 purchasing housing under a homeownership program

15 under this section shall be required to provide from its

16 own resources a downpayment in connection with any loan

17 for acquisition of the housing, in an amount determined

18 by the local housing and management authority.

19 (f) OWNERSHIP INTERESTS.—A homeownership pro20 gram under this section may provide for sale to the pur21 chasing family of any ownership interest that the local

22 housing and management authority considers appropriate

23 under the program, including ownership in fee simple, a

24 condominium interest, an interest in a limited dividend co-
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1 operative, a shared appreciation interest with a local hous2 ing and management authority providing financing.

3 (g) RESALE.—

4 (1) AUTHORITY AND LIMITATION.—A home5 ownership program under this section shall permit

6 the resale of a dwelling unit purchased under the

7 program by an eligible family, but shall provide such

8 limitations on resale as the authority considers ap9 propriate for the authority to recapture, from any

10 economic gain derived from such resale, a portion of

11 the amount of any financial assistance provided

12 under the program by the authority to the eligible

13 family.

14 (2) CONSIDERATIONS.—The limitations referred

15 to in paragraph (1) may provide for consideration of

16 the aggregate amount of assistance provided under

17 the program to the family, the contribution to equity

18 provided by the purchasing eligible family, the period

19 of time elapsed between purchase under the home20 ownership program and resale, the reason for resale,

21 any improvements to the property made by the eligi22 ble family, any appreciation in the value of the prop23 erty, and any other factors that the authority con24 siders appropriate.
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1 (h) APPLICABILITY OF DISPOSITION REQUIRE2 MENTS.—The provisions of section 261 shall apply to dis3 position of public housing dwelling units under a home4 ownership program under this section and any dwelling

5 units sold under a homeownership program under this sec6 tion shall be treated as public housing dwelling units for

7 purposes of subsections (e) and (f) of section 261.

8 Subtitle E—Disposition and

9 Demolition of Developments

10 SEC. 261. REQUIREMENTS FOR DEMOLITION AND DISPOSI11 TION OF DEVELOPMENTS.

12 (a) AUTHORITY AND FLEXIBILITY.—A local housing

13 and management authority may demolish, dispose of, or

14 demolish and dispose of nonviable or nonmarketable public

15 housing developments of the authority in accordance with

16 this section.

17 (b) COMMUNITY IMPROVEMENT PLAN REQUIRE18 MENT.—A local housing and management authority may

19 take any action to demolish or dispose of a public housing

20 development (or a portion of a development) only if such

21 demolition or disposition complies with the provisions of

22 this section and is in accordance with the community im23 provement plan for the authority.

24 (c) PURPOSE OF DEMOLITION OR DISPOSITION.—A

25 local housing and management authority may demolish or
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1 dispose of a public housing development (or portion of a

2 development) only if—

3 (1) the development (or portion thereof) is se4 verely distressed or obsolete;

5 (2) the development (or portion thereof) is in a

6 location making it unsuitable for housing purposes;

7 (3) the development (or portion thereof) has de8 sign or construction deficiencies that make cost-ef9 fective rehabilitation infeasible;

10 (4) assuming that reasonable rehabilitation and

11 management intervention for the development has

12 been completed and paid for, the anticipated revenue

13 that would be derived from charging market-based

14 rents for units in the development (or portion there15 of) would not cover the anticipated operating costs

16 and replacement reserves of the development (or

17 portion) at full occupancy and the development (or

18 portion) would constitute a substantial burden on

19 the resources of the local housing and management

20 authority;

21 (5) retention of the development (or portion

22 thereof) is not in the best interests of the residents

23 of the local housing and management authority be24 cause—
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1 (A) developmental changes in the area sur2 rounding the development adversely affect the

3 health or safety of the residents or the feasible

4 operation of the development by the local hous5 ing and management authority;

6 (B) demolition or disposition will allow the

7 acquisition, development, or rehabilitation of

8 other properties which will be more efficiently

9 or effectively operated as low-income housing;

10 or

11 (C) other factors exist that the authority

12 determines are consistent with the best inter13 ests of the residents and the authority and not

14 inconsistent with other provisions of this Act

15 (which may include use of public housing dwell16 ing units in a homeownership program under

17 subtitle D);

18 (6) in the case only of demolition or disposition

19 of a portion of a development, the demolition or dis20 position will help to ensure the remaining useful life

21 of the remainder of the development; or

22 (7) in the case only of property other than

23 dwelling units—

24 (A) the property is excess to the needs of

25 a development; or
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1 (B) the demolition or disposition is inci2 dental to, or does not interfere with, continued

3 operation of a development.

4 (d) CONSULTATION.—A local housing and manage5 ment authority may demolish or dispose of a public hous6 ing development (or portion of a development) only if the

7 authority notifies and confers regarding the demolition or

8 disposition with—

9 (1) the residents of the development (or por10 tion); and

11 (2) appropriate local government officials.

12 (e) USE OF PROCEEDS.—Any net proceeds from the

13 disposition of a public housing development (or portion of

14 a development) shall be used for—

15 (1) housing assistance for low-income families

16 that is consistent with the low-income housing needs

17 of the community, through acquisition, development,

18 or rehabilitation of, or homeownership programs for,

19 other low-income housing or the provision of choice20 based assistance under title III for such families;

21 (2) supportive services relating to job training

22 or child care for residents of a development or devel23 opments; or

24 (3) leveraging amounts for securing commercial

25 enterprises, on-site in public housing developments
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1 of the local housing and management authority, ap2 propriate to serve the needs of the residents.

3 (f) RELOCATION.—A local housing and management

4 authority that demolishes or disposes of a public housing

5 development (or portion of a development thereof) shall

6 ensure that—

7 (1) each family that is a resident of the devel8 opment (or portion) that is demolished or disposed

9 of is relocated to other safe, clean, healthy, and af10 fordable housing, which is, to the maximum extent

11 practicable, housing of the family’s choice or is pro12 vided with choice-based assistance under title III;

13 (2) the local housing and management author14 ity does not take any action to dispose of any unit

15 until any resident to be displaced is relocated in ac16 cordance with paragraph (1); and

17 (3) each resident family to be displaced is paid

18 relocation expenses, and the rent to be paid initially

19 by the resident following relocation does not exceed

20 the amount permitted under section 225(a).

21 (g) RIGHT OF FIRST REFUSAL FOR RESIDENT ORGA22 NIZATIONS AND RESIDENT MANAGEMENT CORPORA23 TIONS.—

24 (1) IN GENERAL.—A local housing and manage25 ment authority may not dispose of a public housing
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1 development (or portion of a development) unless the

2 authority has, before such disposition, offered to sell

3 the property, as provided in this subsection, to each

4 resident organization and resident management cor5 poration operating at the development for continued

6 use as low-income housing, and no such organization

7 or corporation purchases the property pursuant to

8 such offer.

9 (2) TIMING.—Disposition of a development (or

10 portion thereof) under this section may not take

11 place—

12 (A) before the expiration of the period dur13 ing which any such organization or corporation

14 may notify the authority of interest in purchas15 ing the property, which shall be the 30-day pe16 riod beginning on the date that the authority

17 first provides notice of the proposed disposition

18 of the property to such resident organizations

19 and resident management corporations;

20 (B) if an organization or corporation sub21 mits notice of interest in accordance with sub22 paragraph (A), before the expiration of the pe23 riod during which such organization or corpora24 tion may obtain a commitment for financing to

25 purchase the property, which shall be the 60-
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1 day period beginning upon the submission to

2 the authority of the notice of interest; or

3 (C) if, during the period under subpara4 graph (B), an organization or corporation ob5 tains such financing commitment and makes a

6 bona fide offer to the authority to purchase the

7 property for a price equal to or exceeding the

8 applicable offer price under paragraph (3).

9 The authority shall sell the property pursuant to any

10 purchase offer described in subparagraph (C).

11 (3) TERMS OF OFFER.—An offer by a local

12 housing and management authority to sell a prop13 erty in accordance with this subsection shall involve

14 a purchase price that reflects the market value of

15 the property.

16 (h) INFORMATION FOR COMMUNITY IMPROVEMENT

17 PLAN.—A local housing and management authority may

18 demolish or dispose of a public housing development (or

19 portion thereof) only if it includes in the applicable com20 munity improvement plan information sufficient to de21 scribe—

22 (1) the housing to be demolished or disposed of;

23 (2) the purpose of the demolition or disposition

24 under subsection (c) and why the demolition or dis-
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1 position complies with the requirements under sub2 section (c);

3 (3) how the consultations required under sub4 section (d) will be made;

5 (4) how the net proceeds of the disposition will

6 be used in accordance with subsection (e);

7 (5) how the authority will relocate residents, if

8 necessary, as required under subsection (f); and

9 (6) that the authority has offered the property

10 for acquisition by resident organizations and resi11 dent management corporations in accordance with

12 subsection (g).

13 (i) SITE AND NEIGHBORHOOD STANDARDS EXEMP14 TION.—Notwithstanding any other provision of law, a

15 local housing and management authority may provide for

16 development of public housing dwelling units on the same

17 site or in the same neighborhood as any dwelling units

18 demolished, pursuant to a plan under this section, but only

19 if such development provides for significantly fewer dwell20 ing units.

21 (j) TREATMENT OF REPLACEMENT UNITS.—In con22 nection with any demolition or disposition of public hous23 ing under this section, a local housing and management

24 authority may provide for other housing assistance for
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1 low-income families that is consistent with the low-income

2 housing needs of the community, including—

3 (1) the provision of choice-based assistance

4 under title III; and

5 (2) the development, acquisition, or lease by the

6 authority of dwelling units, which dwelling units

7 shall—

8 (A) be eligible to receive assistance with

9 grant amounts provided under this title; and

10 (B) be made available for occupancy, oper11 ated, and managed in the manner required for

12 public housing, and subject to the other require13 ments applicable to public housing dwelling

14 units.

15 (k) PERMISSIBLE RELOCATION WITHOUT PLAN.—If

16 a local housing and management authority determines

17 that public housing dwelling units are not clean, safe, and

18 healthy or cannot be maintained cost-effectively in a clean,

19 safe, and healthy condition, the local housing and manage20 ment authority may relocate residents of such dwelling

21 units before the submission of a community improvement

22 plan providing for demolition or disposition of such units.

23 (l) CONSOLIDATION OF OCCUPANCY WITHIN OR

24 AMONG BUILDINGS.—Nothing in this section may be con25 strued to prevent a local housing and management author-
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1 ity from consolidating occupancy within or among build2 ings of a public housing development, or among develop3 ments, or with other housing for the purpose of improving

4 living conditions of, or providing more efficient services

5 to, residents.

6 (m) DE MINIMIS EXCEPTION TO DEMOLITION RE7 QUIREMENTS.—Notwithstanding any other provision of

8 this section, in any 5-year period a local housing and man9 agement authority may demolish not more than the lesser

10 of 5 dwelling units or 5 percent of the total dwelling units

11 owned and operated by the local housing and management

12 authority, without providing for such demolition in a com13 munity improvement plan, but only if the space occupied

14 by the demolished unit is used for meeting the service or

15 other needs of public housing residents or the demolished

16 unit was beyond repair.

17 Subtitle F—General Provisions

18 SEC. 271. CONVERSION TO BLOCK GRANT ASSISTANCE.

19 (a) SAVINGS PROVISIONS.—Any amounts made avail20 able to a public housing agency for assistance for public

21 housing pursuant to the United States Housing Act of

22 1937 (or any other provision of law relating to assistance

23 for public housing) under an appropriation for fiscal year

24 1996 or any previous fiscal year shall be subject to the

25 provisions of such Act as in effect before the enactment
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1 of this Act, notwithstanding the repeals made by this Act,

2 except to the extent the Secretary provides otherwise to

3 provide for the conversion of public housing and public

4 housing assistance to the system provided under this Act.

5 (b) MODIFICATIONS.—Notwithstanding any provision

6 of this Act or any annual contributions contract or other

7 agreement entered into by the Secretary and a public

8 housing agency pursuant to the provisions of the United

9 States Housing Act of 1937 (as in effect before the enact10 ment of this Act), the Secretary and the agency may by

11 mutual consent amend, supersede, modify any such agree12 ment as appropriate to provide for assistance under this

13 title, except that the Secretary and the agency may not

14 consent to any such amendment, supersession, or modi15 fication that substantially alters any outstanding obliga16 tions requiring continued maintenance of the low-income

17 character of any public housing development and any such

18 amendment, supersession, or modification shall not be

19 given effect.

20 SEC. 272. PAYMENT OF NON-FEDERAL SHARE.

21 Rental or use-value of buildings or facilities paid for,

22 in whole or in part, from production, modernization, or

23 operation costs financed under this title may be used as

24 the non-Federal share required in connection with activi25 ties undertaken under Federal grant-in-aid programs
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1 which provide social, educational, employment, and other

2 services to the residents in a project assisted under this

3 title.

4 SEC. 273. DEFINITIONS.

5 For purposes of this title, the following definitions

6 shall apply:

7 (1) ACQUISITION COST.—The term ‘‘acquisition

8 cost’’ means the amount prudently expended by a

9 local housing and management authority in acquir10 ing property for a public housing development.

11 (2) DEVELOPMENT.—The terms ‘‘public hous12 ing development’’ and ‘‘development’’ mean—

13 (A) public housing; and

14 (B) the improvement of any such housing.

15 (3) ELIGIBLE LOCAL HOUSING AND MANAGE16 MENT AUTHORITY.—The term ‘‘eligible local housing

17 and management authority’’ means, with respect to

18 a fiscal year, a local housing and management au19 thority that is eligible under section 202(b) for a

20 grant under this title.

21 (4) GROUP HOME AND INDEPENDENT LIVING

22 FACILITY.—The terms ‘‘group home’’ and ‘‘inde23 pendent living facility’’ have the meanings given

24 such terms in section 811(k) of the Cranston-Gon25 zalez National Affordable Housing Act.
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1 (5) OPERATION.—The term ‘‘operation’’ means

2 any or all undertakings appropriate for manage3 ment, operation, services, maintenance, security (in4 cluding the cost of security personnel), or financing

5 in connection with a public housing development, in6 cluding the financing of resident programs and serv7 ices.

8 (6) PRODUCTION.—The term ‘‘production’’

9 means any or all undertakings necessary for plan10 ning, land acquisition, financing, demolition, con11 struction, or equipment, in connection with the con12 struction, acquisition, or rehabilitation of a property

13 for use as a public housing development, including

14 activity in connection with a public housing develop15 ment that is confined to the reconstruction, remodel16 ing, or repair of existing buildings.

17 (7) PRODUCTION COST.—The term ‘‘production

18 cost’’ means the costs incurred by a local housing

19 and management authority for production of public

20 housing and the necessary financing for production

21 (including the payment of carrying charges and ac22 quisition costs).

23 (8) RESIDENT COUNCIL.—The term ‘‘resident

24 council’’ means an organization or association that

25 meets the requirements of section 235(a).
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1 (9) RESIDENT MANAGEMENT CORPORATION.—

2 The term ‘‘resident management corporation’’ means

3 a corporation that meets the requirements of section

4 235(b).

5 (10) RESIDENT PROGRAM.—The term ‘‘resident

6 programs and services’’ means programs and serv7 ices for families residing in public housing develop8 ments. Such term includes (A) the development and

9 maintenance of resident organizations which partici10 pate in the management of public housing develop11 ments, (B) the training of residents to manage and

12 operate the public housing development and the uti13 lization of their services in management and oper14 ation of the development, (C) counseling on house15 hold management, housekeeping, budgeting, money

16 management, homeownership issues, child care, and

17 similar matters, (D) advice regarding resources for

18 job training and placement, education, welfare,

19 health, and other community services, (E) services

20 that are directly related to meeting resident needs

21 and providing a wholesome living environment; and

22 (F) referral to appropriate agencies in the commu23 nity when necessary for the provision of such serv24 ices. To the maximum extent available and appro25 priate, existing public and private agencies in the
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1 community shall be used for the provision of such

2 services.

3 SEC. 274. AUTHORIZATION OF APPROPRIATIONS.

4 (a) BLOCK GRANTS.—There is authorized to be ap5 propriated, for block grants under this title,

6 $5,500,000,000 for each of fiscal years 1996, 1997, 1998,

7 1999, and 2000.

8 (b) OPERATION SAFE HOME.—There is authorized to

9 be appropriated, for assistance for relocating residents of

10 public housing under the operation safe home program of

11 the Department of Housing and Urban Development (in12 cluding assistance for costs of relocation and housing as13 sistance under title III), $700,000 for each of fiscal years

14 1996, 1997, 1998, 1999, and 2000.

15 TITLE III—CHOICE-BASED RENT16 AL HOUSING AND HOME17 OWNERSHIP ASSISTANCE FOR

18 LOW-INCOME FAMILIES

19 Subtitle A—Grants and Allocation

20 SEC. 301. AUTHORITY TO PROVIDE HOUSING ASSISTANCE

21 GRANTS.

22 To the extent that amounts to carry out this title are

23 made available, the Secretary may make grants to local

24 housing and management authorities for each fiscal year

25 to provide housing assistance under this title.
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1 SEC. 302. GRANT AGREEMENTS.

2 (a) AUTHORITY.—The Secretary may make a grant

3 under this title to a local housing and management au4 thority for a fiscal year only if the Secretary has entered

5 into a grant agreement under this section with the local

6 housing and management authority, under which the Sec7 retary shall provide such authority with grant amounts (in

8 the amount of the allocation for the authority determined

9 pursuant to section 303) for housing assistance under this

10 title for low-income families.

11 (b) USE FOR HOUSING ASSISTANCE.—A grant agree12 ment shall require a local housing and management au13 thority to use amounts from a grant under this title to

14 provide housing assistance in any manner authorized

15 under this title.

16 (c) ANNUAL OBLIGATION OF AUTHORITY.—A grant

17 under this title shall provide amounts for housing assist18 ance for 1 fiscal year covered by the grant agreement.

19 (d) ENFORCEMENT OF HOUSING QUALITY REQUIRE20 MENTS.—Each grant agreement shall require the local

21 housing and management authority administering assist22 ance provided under the agreement—

23 (1) to ensure compliance, under each housing

24 assistance payments contract entered into pursuant

25 to such grant, with the provisions of such contract

26 included pursuant to section 351(c)(4); and
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1 (2) to establish procedures for assisted families

2 to notify the authority of any noncompliance with

3 such provisions.

4 SEC. 303. ALLOCATION OF AMOUNTS.

5 (a) FORMULA ALLOCATION.—

6 (1) IN GENERAL.—When amounts for grants

7 under this title are first made available for reserva8 tion, after reserving amounts in accordance with

9 subsection (c) and section 109, the Secretary shall

10 allocate such amounts on the basis of a formula es11 tablished in accordance with paragraph (2) and is

12 based on appropriate criteria to reflect the needs of

13 different States, areas, and communities, using the

14 most recent data available from the Bureau of the

15 Census of the Department of Commerce and the

16 comprehensive housing affordability strategy under

17 section 105 of the Cranston-Gonzalez National Af18 fordable Housing Act for the applicable jurisdiction.

19 (2) REGULATIONS.—The formula under this

20 subsection shall be established by regulation issued

21 by the Secretary. Notwithstanding sections 563(a)

22 and 565(a) of title 5, United States Code, any pro23 posed regulation containing such formula shall be is24 sued pursuant to a negotiated rulemaking procedure

25 under subchapter of chapter 5 of such title and the
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1 Secretary shall establish a negotiated rulemaking

2 committee for development of any such proposed

3 regulations.

4 (b) ALLOCATION CONSIDERATIONS.—

5 (1) LIMITATION ON REALLOCATION FOR AN6 OTHER STATE.—Any amounts allocated for a State

7 or areas or communities within a State that are not

8 likely to be used within a the fiscal year for which

9 the grant is made shall not be reallocated for use in

10 another State, unless the Secretary determines that

11 other areas or communities within the same State

12 (that are eligible for grant amounts under this title)

13 cannot use the amounts within the same fiscal year.

14 (2) EFFECT OF RECEIPT OF TENANT-BASED AS15 SISTANCE FOR DISABLED FAMILIES.—The Secretary

16 may not consider the receipt by a local housing and

17 management authority of assistance under section

18 811(b)(1) of the Cranston-Gonzalez National Afford19 able Housing Act, or the amount received, in ap20 proving amounts under this title for the authority or

21 in determining the amount of such assistance to be

22 provided to the authority.

23 (3) EXEMPTION FROM FORMULA ALLOCA24 TION.—The formula allocation requirements of sub25 section (a) shall not apply to any assistance under
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1 this title that is approved in appropriation Acts for

2 uses that the Secretary determines are incapable of

3 geographic allocation, including amendments of ex4 isting housing assistance payments contracts, re5 newal of such contracts, assistance to families that

6 would otherwise lose assistance due to the decision

7 of the project owner to prepay the project mortgage

8 or not to renew the housing assistance payments

9 contract, assistance to prevent displacement or to

10 provide replacement housing in connection with the

11 demolition or disposition of public and Indian hous12 ing, assistance for relocation from public housing,

13 assistance in connection with protection of crime

14 witnesses, assistance for conversion from leased

15 housing contracts under section 23 of the United

16 States Housing Act of 1937 (as in effect before the

17 enactment of the Housing and Community Develop18 ment Act of 1974), and assistance in support of the

19 property disposition and loan management functions

20 of the Secretary.

21 (c) SET-ASIDE FOR INDIAN HOUSING ASSISTANCE.—

22 The Secretary shall allocate, in a manner determined by

23 the Secretary, a portion of the amounts made available

24 in each fiscal year for grants under this title for grants

25 for Indian housing authorities.
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1 (d) RECAPTURE UPON TURNOVER FOR

2 REALLOCATION.—

3 (1) AUTHORITY.—In each fiscal year, from any

4 budget authority made available for assistance under

5 this title or section 8 of the United States Housing

6 Act of 1937 (as in effect before the enactment of

7 this Act) that is obligated to a local housing and

8 management authority but remains unobligated by

9 the authority upon the expiration of the 8-month pe10 riod beginning upon the initial availability of such

11 amounts for obligation by the authority, the Sec12 retary may deobligate an amount, as determined by

13 the Secretary, not exceeding 50 percent of such

14 budget authority.

15 (2) USE.—The Secretary may reallocate and

16 transfer any amounts deobligated under paragraph

17 (1) only to local housing and management authori18 ties in areas that the Secretary determines have re19 ceived less funding than other areas, based on the

20 relative needs of all areas.

21 SEC. 304. ADMINISTRATIVE FEES.

22 (a) ESTABLISHMENT OF FEE AND USE OF GRANT

23 AMOUNTS.—The Secretary shall establish a fee for the

24 costs incurred by a local housing and management author25 ity in administering the program for housing assistance
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1 under this title. Notwithstanding any other provision of

2 this title, a local housing and management authority may

3 use grant amounts provided under this title in the amount

4 of the fee authorized under this section for such costs.

5 (b) AMOUNT.—The amount of the fee under sub6 section (a) for a grant for a fiscal year under any grant

7 agreement shall be equal to 6.0 percent of the total grant

8 amount provided to the local housing and management au9 thority for the fiscal year. The Secretary may increase the

10 fee if necessary to reflect the higher costs of administering

11 small programs and programs operating over large geo12 graphic areas.

13 SEC. 305. AUTHORIZATIONS OF APPROPRIATIONS.

14 There is authorized to be appropriated, for grants

15 under this title for providing housing assistance,

16 $862,000,000 for each of fiscal years 1996, 1997, 1998,

17 1999, and 2000.

18 SEC. 306. CONVERSION OF SECTION 8 ASSISTANCE.

19 Any amounts made available to a local housing and

20 management authority under a contract for annual con21 tributions for assistance under section 8 of the United

22 States Housing Act of 1937 (as in effect before the enact23 ment of this Act) that have not been obligated for such

24 assistance by such authority before such enactment shall

25 be used to provide assistance under this title, except to
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1 the extent the Secretary determines such use is inconsist2 ent with existing commitments.

3 Subtitle B—Choice-Based Housing

4 Assistance for Eligible Families

5 SEC. 321. ELIGIBLE FAMILIES AND PREFERENCES FOR AS6 SISTANCE.

7 (a) LOW-INCOME REQUIREMENT.—Housing assist8 ance under this title may be provided only on behalf of

9 a family that—

10 (1) at the time that such assistance is initially

11 provided on behalf of the family and at the time of

12 the most recent review of the income of the family

13 for purposes of this title, is determined by the local

14 housing and management authority to be a low-in15 come family; or

16 (2) qualifies to receive such assistance under

17 any other provision of Federal law.

18 (b) REVIEWS OF FAMILY INCOMES.—

19 (1) IN GENERAL.—Reviews of family incomes

20 for purposes of this title shall be subject to the pro21 visions of section 904(e) of the Stewart B. McKin22 ney Homeless Assistance Amendments Act of 1988

23 and shall be conducted upon the initial provision of

24 housing assistance for the family and thereafter not

25 less than—
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1 (A) once every 3 years, in the cases of el2 derly families and disabled families; and

3 (B) annually, in the case of nonelderly

4 families.

5 (2) PROCEDURES.—Each local housing and

6 management authority administering housing assist7 ance under this title shall establish procedures that

8 are appropriate and necessary to ensure that income

9 data provided to the authority and owners by fami10 lies applying for or receiving housing assistance from

11 the authority is complete and accurate.

12 (c) PREFERENCES FOR ASSISTANCE.—

13 (1) AUTHORITY TO ESTABLISH.—Any local

14 housing and management authority that receives

15 grant amounts under this title may establish a sys16 tem for making housing assistance available on be17 half of eligible families that provides preference for

18 such assistance to eligible families having certain

19 characteristics.

20 (2) CONTENT.—Each system of preferences es21 tablished pursuant to this subsection shall be based

22 upon local housing needs and priorities, as deter23 mined by the local housing and management author24 ity.
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1 (d) TREATMENT OF ASSISTED FAMILIES WHO MOVE

2 OUT OF JURISDICTION OF LHMA.—A local housing and

3 management authority may, in the discretion of the agen4 cy and notwithstanding any preferences under subsection

5 (c), provide housing assistance for eligible families (or a

6 certain number of such families) who have moved into the

7 jurisdiction of the authority and on whose behalf such as8 sistance was being provided, at the time of such move, by

9 the authority for the jurisdiction from which the family

10 moved.

11 (e) TREATMENT OF FAMILIES ON WAITING LIST

12 WHO MOVE OUT OF JURISDICTION OF LHMA.—

13 (1) MOVE TO JURISDICTION WITH OPEN WAIT14 ING LIST.—Except as provided in paragraph (2), if

15 an eligible family (A) applies for choice-based hous16 ing assistance while residing within the jurisdiction

17 of a local housing and management authority, (B)

18 moves outside of the jurisdiction of the authority be19 fore such assistance is provided on behalf of the

20 family, and (C) applies for housing assistance from

21 the local housing and management authority for the

22 jurisdiction to which the family moves, such author23 ity shall consider the application to have been made

24 upon the date that the family applied for assistance
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1 with the authority in whose jurisdiction the family

2 previously resided.

3 (2) MOVE TO JURISDICTION WITH CLOSED

4 WAITING LIST.—If the local housing and manage5 ment authority for the jurisdiction to which an eligi6 ble family described in paragraph (1) moves is not

7 generally accepting applications for housing assist8 ance, such jurisdiction shall accept the application of

9 such family but shall treat the application as having

10 been made on the date on which it is actually made.

11 (f) AUTHORITY TO DENY ASSISTANCE TO CERTAIN

12 FAMILIES WHO MOVE.—A local housing and management

13 authority may establish criteria for denying housing as14 sistance, and pursuant to such criteria may deny such as15 sistance, to an eligible family who has moved from the ju16 risdiction of another authority, who received housing as17 sistance from the authority for such other jurisdiction, and

18 whose assistance was terminated by such other authority

19 for reasons other than income ineligibility or the change

20 of residence.

21 SEC. 322. RESIDENT CONTRIBUTION.

22 (a) IN GENERAL.—An assisted family shall contrib23 ute on a monthly basis for the rental of an assisted dwell24 ing unit an amount that the local housing and manage-
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1 ment authority determines is appropriate with respect to

2 the family and the unit, which shall be—

3 (1) based upon factors including the adjusted

4 income of the family, the type and size of the dwell5 ing unit, and any other factors that the authority

6 considers appropriate;

7 (2) not less than $50; and

8 (3) not more than the applicable payment

9 standard established under section 353 for the size

10 and type of the assisted dwelling unit for the area

11 in which the unit is located.

12 (b) RENTAL CONTRIBUTION FOR ELDERLY AND DIS13 ABLED FAMILIES.—In establishing the amount of monthly

14 rental contributions under this section for disabled fami15 lies and elderly families residing in assisted dwelling units,

16 a local housing and management authority shall waive the

17 applicability of any provision of subsection (a) that may

18 be necessary to establish such contributions that are rea19 sonable based on the adjusted incomes of such families.

20 SEC. 323. RENTAL INDICATORS.

21 (a) IN GENERAL.—The Secretary shall establish and

22 issue rental indicators under this section periodically, but

23 not less than annually, for existing rental dwelling units

24 that are eligible dwelling units. The Secretary shall estab25 lish and issue the rental indicators by housing market area
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1 (as the Secretary shall establish) for various sizes and

2 types of dwelling units.

3 (b) AMOUNT.—For a market area, the rental indica4 tor established under subsection (a) for a dwelling unit

5 of a particular size and type in the market area shall be

6 a dollar amount that reflects the rental amount for a

7 standard quality rental unit of such size and type in the

8 market area that is an eligible dwelling unit.

9 (c) EFFECTIVE DATE.—The Secretary shall cause

10 the proposed rental indicators established under sub11 section (a) for each market area to be published in the

12 Federal Register with reasonable time for public comment,

13 and such rental indicators shall become effective upon the

14 date of publication in final form in the Federal Register.

15 (d) ANNUAL ADJUSTMENT.—Each rental indicator in

16 effect under this section shall be adjusted to be effective

17 on October 1 of each year to reflect changes, based on

18 the most recent available data trended so that the indica19 tors will be current for the year to which they apply, in

20 rents for existing rental dwelling units of various sizes and

21 types in the market area suitable for occupancy by families

22 assisted under this title.
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1 SEC. 324. LEASE TERMS.

2 Rental assistance may be provided for an eligible

3 dwelling unit only if the assisted family and the owner of

4 the dwelling unit enter into a lease for the unit that—

5 (1) has a lease term that is agreed to by the

6 owner and the assisted family;

7 (2) contains terms and conditions specifying

8 that termination of tenancy during the term of a

9 lease shall be subject to the provisions set forth in

10 section 325;

11 (3) is set forth in the standard form, which is

12 used in the local housing market area by the owner

13 and applies generally to any other tenants in the

14 property who are not assisted families, together with

15 any addendum necessary to include the many terms

16 required under this section; and

17 (4) contains other terms and conditions that

18 the local housing and management authority deter19 mines are appropriate.

20 SEC. 325. TERMINATION OF TENANCY.

21 (a) GENERAL GROUNDS FOR TERMINATION OF TEN22 ANCY.—Each housing assistance payments contract under

23 section 351 shall provide that the owner of any assisted

24 dwelling unit assisted under the contract may, before expi25 ration of a lease for a unit, terminate the tenancy of any

26 tenant of the unit, but only for—
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1 (1) violation of the terms and conditions of the

2 lease, violation of applicable Federal, State, or local

3 law, or other good cause; or

4 (2) any activity, engaged in by the tenant, any

5 member of the tenant’s household, or any guest or

6 other person under the tenant’s control (regardless

7 of whether the resident had actual knowledge of

8 such activity), that—

9 (A) threatens the health or safety of, or

10 right to peaceful enjoyment of the premises by,

11 other tenants or employees of the owner or

12 manager of the housing;

13 (B) threatens the health or safety of, or

14 right to peaceful enjoyment of their residences

15 by, persons residing in the immediate vicinity of

16 the premises; or

17 (C) is criminal activity (including drug-re18 lated criminal activity).

19 (b) MANNER OF TERMINATION.—Each housing as20 sistance payments contract shall provide that the owner

21 shall conduct the termination of tenancy of any tenant of

22 an assisted dwelling unit under the contract in accordance

23 with applicable State or local laws, including providing any

24 notice of termination required under such laws.
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1 SEC. 326. ELIGIBLE OWNERS.

2 (a) OWNERSHIP ENTITY.—Rental assistance under

3 this title may be provided for any eligible dwelling unit

4 for which the owner is any public agency, private person

5 or entity (including a cooperative), nonprofit organization,

6 agency of the Federal Government, or local housing and

7 management authority.

8 (b) INELIGIBLE OWNERS.—Notwithstanding sub9 section (a), a local housing and management authority

10 may not provide rental assistance under this title for the

11 rental of a dwelling unit if the owner of the unit is

12 debarred, suspended, or subject to limited denial of par13 ticipation under part 24 of title 24, Code of Federal Regu14 lations.

15 SEC. 327. SELECTION OF DWELLING UNITS.

16 The determination of the dwelling unit in which an

17 assisted family resides and for which housing assistance

18 is provided under this title shall be made solely by the

19 assisted family, subject to the provisions of this title.

20 SEC. 328. ELIGIBLE DWELLING UNITS.

21 (a) IN GENERAL.—A dwelling unit shall be an eligible

22 dwelling unit for purposes of this title only if the local

23 housing and management authority to provide housing as24 sistance for the dwelling unit—

25 (1) determines that the dwelling unit is an ex26 isting dwelling unit that is not located within a nurs-
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1 ing home or the grounds of any penal, reformatory,

2 medical, mental, or similar public or private institu3 tion;

4 (2) determines that the dwelling unit com5 plies—

6 (A) with applicable State or local laws,

7 regulations, standards, or codes regarding hab8 itability of residential dwellings that—

9 (i) are in effect for the jurisdiction in

10 which the dwelling unit is located;

11 (ii) provide protection to residents of

12 the dwellings that is equal to or greater

13 than the protection provided under the

14 housing quality standards established

15 under subsection (b); and

16 (iii) that do not severely restrict hous17 ing choice; or

18 (B) in the case of a dwelling unit located

19 in a jurisdiction which does not have in effect

20 laws, regulations, standards, or codes described

21 in subparagraph (A), with the housing quality

22 standards established under subsection (b); and

23 (3) makes the determinations required under

24 paragraphs (1) and (2) pursuant to an inspection of
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1 the dwelling unit conducted before any assistance

2 payment is made for the unit.

3 Each local housing and management authority providing

4 housing assistance shall identify, in the community im5 provement plan for the authority, whether the authority

6 is utilizing the standard under subparagraph (A) or (B)

7 of paragraph (2) and, if the authority utilizes the standard

8 under subparagraph (A), shall certify in such plan that

9 the applicable State or local laws, regulations, standards,

10 or codes comply with the requirements under such sub11 paragraph.

12 (b) FEDERAL HOUSING QUALITY STANDARDS.—The

13 Secretary shall establish housing quality standards under

14 this subsection that ensure that assisted dwelling units are

15 safe, clean, and healthy. Such standards shall include re16 quirements relating to habitability, including maintenance,

17 health and sanitation factors, condition, and construction

18 of dwellings, and shall, to the greatest extent practicable,

19 be consistent with the standards established under section

20 233(b). The Secretary shall differentiate between major

21 and minor violations of such standards.

22 (c) ANNUAL INSPECTIONS.—Each local housing and

23 management authority providing housing assistance shall

24 make an annual inspection of each assisted dwelling unit

25 during the term of the housing assistance payments con-
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1 tracts for the unit to determine whether the unit is main2 tained in accordance with the requirements under sub3 section (a)(2). The authority shall submit the results of

4 such inspections to the Secretary and the Inspector Gen5 eral for the Department of Housing and Urban Develop6 ment and such results shall be available to the Housing

7 Foundation and Accreditation Board established under

8 title IV and any auditor conducting an audit under section

9 432.

10 (d) INSPECTION GUIDELINES.—The Secretary shall

11 establish procedural guidelines and performance standards

12 to facilitate inspections of dwelling units and conform such

13 inspections with practices utilized in the private housing

14 market. Such guidelines and standards shall take into con15 sideration variations in local laws and practices of local

16 housing and management authorities and shall provide

17 flexibility to authorities appropriate to facilitate efficient

18 provision of assistance under this title.

19 (e) RULE OF CONSTRUCTION.—This section may not

20 be construed to prevent the provision of housing assistance

21 in connection with supportive services for elderly or dis22 abled families.

23 SEC. 329. HOMEOWNERSHIP OPTION.

24 (a) IN GENERAL.—A local housing and management

25 authority providing housing assistance under this title
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1 may provide homeownership assistance to assist eligible

2 families to purchase a dwelling unit.

3 (b) REQUIREMENTS.—A local housing and manage4 ment authority providing homeownership assistance under

5 this section shall, as a condition of an eligible family re6 ceiving such assistance, require the family to—

7 (1) demonstrate that the family has income

8 from employment or other sources (other than public

9 assistance), as determined in accordance with re10 quirements established by the authority; and

11 (2) meet any other initial or continuing require12 ments established by the local housing and manage13 ment authority.

14 (c) DOWNPAYMENT REQUIREMENT.—A local housing

15 and management authority may establish minimum down16 payment requirements, if appropriate, in connection with

17 loans made for the purchase of dwelling units for which

18 homeownership assistance is provided under this section.

19 SEC. 330. ADMINISTRATIVE GRIEVANCE PROCEDURE.

20 Each local housing and management authority pro21 viding housing assistance with grant amounts under this

22 title shall establish and implement an administrative griev23 ance procedure under which assisted families will have an

24 opportunity for disposition of grievances concerning ad25 verse housing management authority actions.
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1 Subtitle C—Payment of Housing

2 Assistance on Behalf of Assisted

3 Families

4 SEC. 351. HOUSING ASSISTANCE PAYMENTS CONTRACTS.

5 (a) IN GENERAL.—Each local housing and manage6 ment authority that receives amounts under a grant agree7 ment may enter into housing assistance payments con8 tracts with owners of existing dwelling units to make hous9 ing assistance payments to such owners in accordance with

10 this title.

11 (b) LHMA ACTING AS OWNER.—A local housing and

12 management authority may enter into a housing assist13 ance payments contract to make housing assistance pay14 ments under this title to itself (or any agency or instru15 mentality thereof) as the owner of dwelling units, and the

16 authority shall be subject to the same requirements that

17 are applicable to other owners.

18 (c) PROVISIONS.—Each housing assistance payments

19 contract shall—

20 (1) have a term of not less than 1 month nor

21 more than 24 months;

22 (2) require that the assisted dwelling unit may

23 be rented only pursuant to a lease that complies

24 with the requirements of section 324;
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1 (3) comply with the requirements of section 325

2 (relating to termination of tenancy);

3 (4) require the owner to maintain the dwelling

4 unit in accordance with the applicable standards

5 under section 328(a)(2); and

6 (5) provide that the screening and selection of

7 eligible families for assisted dwelling units shall be

8 the function of the owner.

9 SEC. 352. AMOUNT OF MONTHLY ASSISTANCE PAYMENT.

10 The amount of the monthly assistance payment for

11 housing assistance under this title on behalf of an assisted

12 family shall be as follows:

13 (1) UNITS HAVING GROSS RENT LESS THAN

14 PAYMENT STANDARD.—In the case of a dwelling

15 unit bearing a gross rent that does not exceed the

16 payment standard established under section 353 for

17 a dwelling unit of the applicable size and located in

18 the market area in which such assisted dwelling unit

19 is located, the amount by which the gross rent for

20 the dwelling unit exceeds the amount of the resident

21 contribution determined in accordance with section

22 322.

23 (2) UNITS HAVING GROSS RENT EXCEEDING

24 PAYMENT STANDARD.—In the case of a dwelling

25 unit bearing a gross rent that exceeds the payment
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1 standard established under section 353 for a dwell2 ing unit of the applicable size and located in the

3 market area in which such assisted dwelling unit is

4 located, the amount by which such payment stand5 ard exceeds the amount of the resident contribution

6 determined in accordance with section 322.

7 SEC. 353. PAYMENT STANDARDS.

8 (a) ESTABLISHMENT.—Each local housing and man9 agement authority providing housing assistance under this

10 title shall establish payment standards under this section

11 for various areas, and sizes and types of dwelling units,

12 for use in determining the amount of monthly housing as13 sistance payment to be provided on behalf of assisted fami14 lies.

15 (b) USE OF RENTAL INDICATORS.—The payment

16 standards for each market area and size and type of hous17 ing shall be based on rental indicators established under

18 section 323 for such area, size, and type.

19 SEC. 354. REASONABLE RENTS.

20 (a) ESTABLISHMENT.—The rent charged for a dwell21 ing unit for which rental assistance is provided under this

22 title shall be established pursuant to negotiation and

23 agreement between the assisted family and the owner of

24 the dwelling unit.

25 (b) REASONABLENESS.—
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1 (1) DETERMINATION.—A local housing and

2 management authority providing rental assistance

3 under this title for a dwelling unit shall, before com4 mencing assistance payments for a unit, determine

5 whether the rent charged for the unit exceeds the

6 rents charged for comparable units in the applicable

7 private unassisted market.

8 (2) UNREASONABLE RENTS.—If the authority

9 determines that the rent charged for a dwelling unit

10 exceeds such comparable rents, the authority—

11 (A) shall inform the assisted family renting

12 the unit that such rent exceeds the rents for

13 comparable unassisted units in the market; and

14 (B) may refuse to provide housing assist15 ance payments for such unit.

16 SEC. 355. PROHIBITION OF ASSISTANCE FOR VACANT

17 RENTAL UNITS.

18 If an assisted family vacates a dwelling unit for which

19 rental assistance is provided under a housing assistance

20 payments contract before the expiration of the term of the

21 lease for the unit, rental assistance pursuant to such con22 tract may not be provided for the unit after the month

23 during which the unit was vacated.
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1 SEC. 356. PROHIBITION OF PORTABILITY.

2 If an assisted family moves outside of the jurisdiction

3 of the local housing and management authority providing

4 the housing assistance for the family, the authority may

5 not provide assistance for the new dwelling unit of the

6 family.

7 Subtitle D—General and

8 Miscellaneous Provisions

9 SEC. 371. DEFINITIONS.

10 For purposes of this title:

11 (1) ASSISTED DWELLING UNIT.—The term ‘‘as12 sisted dwelling unit’’ means a dwelling unit in which

13 an assisted family resides and for which housing as14 sistance payments are made under this title.

15 (2) ASSISTED FAMILY.—The term ‘‘assisted

16 family’’ means an eligible family on whose behalf

17 housing assistance payments are made under this

18 title or who has been selected and approved for

19 housing assistance.

20 (3) CHOICE-BASED.—The term ‘‘choice-based’’

21 means, with respect to housing assistance, that the

22 assistance is not attached to a dwelling unit but can

23 be used for any eligible dwelling unit selected by the

24 eligible family.

25 (4) ELIGIBLE DWELLING UNIT.—The term ‘‘eli26 gible dwelling unit’’ means a dwelling unit that com-
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1 plies with the requirements under section 328 for

2 consideration as an eligible dwelling unit.

3 (5) ELIGIBLE FAMILY.—The term ‘‘eligible

4 family’’ means a family that meets the requirements

5 under section 321(a) for assistance under this title.

6 (6) GRANT AGREEMENT.—The term ‘‘grant

7 agreement’’ means an agreement under section 302

8 between the Secretary and a local housing and man9 agement authority for the Secretary to provide grant

10 amounts for housing assistance under this title.

11 (7) HOMEOWNERSHIP ASSISTANCE.—The term

12 ‘‘homeownership assistance’’ means housing assist13 ance provided under section 329 for the ownership

14 of a dwelling unit.

15 (8) HOUSING ASSISTANCE.—The term ‘‘housing

16 assistance’’ means assistance provided under this

17 title on behalf of low-income families for the rental

18 or ownership of an eligible dwelling unit.

19 (9) HOUSING ASSISTANCE PAYMENTS CON20 TRACT.—The term ‘‘housing assistance payments

21 contract’’ means a contract under section 351 be22 tween a local housing and management authority (or

23 the Secretary) and an owner to make housing assist24 ance payments under this title to the owner on be25 half of an assisted family.
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1 (10) LOCAL HOUSING AND MANAGEMENT AU2 THORITY.—The terms ‘‘local housing and manage3 ment authority’’ and ‘‘authority’’ have the meaning

4 given such terms in section 103, except that the

5 terms include—

6 (A) a consortia of local housing and man7 agement authorities that the Secretary deter8 mines has the capacity and capability to admin9 ister a program for housing assistance under

10 this title in an efficient manner;

11 (B) any other entity that, upon the date of

12 the enactment of this Act, was administering

13 any program for tenant-based rental assistance

14 under section 8 of the United States Housing

15 Act of 1937 (as in effect before the enactment

16 of this Act); and

17 (C) with respect to any area in which no

18 local housing and management authority has

19 been organized or where the Secretary deter20 mines that a local housing and management au21 thority is unwilling or unable to implement this

22 title, or is not performing effectively—

23 (i) the Secretary or another entity

24 that by contract agrees to receive grant

25 amounts under this title and enter into
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1 housing assistance payments contracts

2 with owners and perform the other func3 tions of local housing and management au4 thority under this title; or

5 (ii) notwithstanding any provision of

6 State or local law, a local housing and

7 management authority for another area

8 that contracts with the Secretary to ad9 minister a program for housing assistance

10 under this title, without regard to any oth11 erwise applicable limitations on its area of

12 operation.

13 (11) OWNER.—The term ‘‘owner’’ means the

14 person or entity having the legal right to lease or

15 sublease dwelling units. Such term includes any

16 principals, general partners, primary shareholders,

17 and other similar participants in any entity owning

18 a multifamily housing project, as well as the entity

19 itself.

20 (12) RENT.—The terms ‘‘rent’’ and ‘‘rental’’

21 include, with respect to members of a cooperative,

22 the charges under the occupancy agreements be23 tween such members and the cooperative.
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1 (13) RENTAL ASSISTANCE.—The term ‘‘rental

2 assistance’’ means housing assistance provided

3 under this title for the rental of a dwelling unit.

4 SEC. 372. RENTAL ASSISTANCE FRAUD RECOVERIES.

5 (a) AUTHORITY TO RETAIN RECOVERED

6 AMOUNTS.—The Secretary shall permit local housing and

7 management authorities administering housing assistance

8 under this title to retain, out of amounts obtained by the

9 authorities from tenants that are due as a result of fraud

10 and abuse, an amount (determined in accordance with reg11 ulations issued by the Secretary) equal to the greater of—

12 (1) 50 percent of the amount actually collected;

13 or

14 (2) the actual, reasonable, and necessary ex15 penses related to the collection, including costs of in16 vestigation, legal fees, and collection agency fees.

17 (b) USE.—Amounts retained by an authority shall be

18 made available for use in support of the affected program

19 or project, in accordance with regulations issued by the

20 Secretary. If the Secretary is the principal party initiating

21 or sustaining an action to recover amounts from families

22 or owners, the provisions of this section shall not apply.

23 (c) RECOVERY.—Amounts may be recovered under

24 this section—
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1 (1) by an authority through a lawsuit (including

2 settlement of the lawsuit) brought by the authority

3 or through court-ordered restitution pursuant to a

4 criminal proceeding resulting from an authority’s in5 vestigation where the authority seeks prosecution of

6 a family or where an authority seeks prosecution of

7 an owner;

8 (2) through administrative repayment agree9 ments with a family or owner entered into as a re10 sult of an administrative grievance procedure con11 ducted by an impartial decisionmaker in accordance

12 with section 330; or

13 (3) through an agreement between the parties.

14 Subtitle E—Provisions Relating to

15 Discontinued HUD-Adminis16 tered Programs for Project17 Based Assistance

18 SEC. 381. PROHIBITION OF DISCRIMINATION IN SUB19 SIDIZED PROJECTS.

20 (a) IN GENERAL.—No owner of a subsidized project

21 shall refuse to lease any available dwelling unit in any such

22 project of such owner that rents for an amount not greater

23 than the applicable rental indicator for a comparable unit,

24 as determined under section 305, to an assisted family

25 under this title, a proximate cause of which is the status
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1 of such prospective tenant as an assisted family, and to

2 enter into a housing assistance payments contract respect3 ing such unit.

4 (b) DEFINITION.—For purposes of this section, the

5 term ‘‘subsidized project’’ has the meaning given the term

6 in section 203(b) of the Housing and Community Develop7 ment Amendments of 1978.

8 TITLE IV—ACCREDITATION AND

9 OVERSIGHT OF LOCAL HOUS10 ING AND MANAGEMENT AU11 THORITIES

12 Subtitle A—Housing Foundation

13 and Accreditation Board

14 SEC. 401. ESTABLISHMENT.

15 There is established an independent agency in the ex16 ecutive branch of the Government to be known as the

17 Housing Foundation and Accreditation Board (in this title

18 referred to as the ‘‘Board’’).

19 SEC. 402. MEMBERSHIP.

20 (a) IN GENERAL.—The Board shall be composed of

21 12 members appointed by the President not later than 180

22 days after the date of the enactment of this Act, as fol23 lows:
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1 (1) 4 members shall be appointed from among

2 10 individuals recommended by the Secretary of

3 Housing and Urban Development.

4 (2) 4 members shall be appointed from among

5 10 individuals recommended by the Chairman and

6 Ranking Minority Member of the Committee on

7 Banking, Housing, and Urban Affairs of the Senate.

8 (3) 4 members appointed from among 10 indi9 viduals recommended by the Chairman and Ranking

10 Minority Member of the Committee on Banking and

11 Financial Services of the House of Representatives.

12 (b) QUALIFICATIONS.—

13 (1) REQUIRED REPRESENTATION.—The Board

14 shall at all times have the following members:

15 (A) 2 members who are residents of public

16 housing or dwelling units assisted under title

17 III of this Act or the provisions of section 8 of

18 the United States Housing Act of 1937 (as in

19 effect before the enactment of this Act).

20 (B) 2 members who are executive directors

21 of local housing and management authorities.

22 (C) 1 member who is a member of the In23 stitute of Real Estate Managers.

24 (D) 1 member who is the owner of a multi25 family housing project assisted under a pro-
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1 gram administered by the Secretary of Housing

2 and Urban Development.

3 (2) REQUIRED EXPERIENCE.—The Board shall

4 at all times have as members individuals with the

5 following experience:

6 (A) At least 1 individual who has extensive

7 experience in the residential real estate finance

8 business.

9 (B) At least 1 individual who has extensive

10 experience in operating a nonprofit organization

11 that provides affordable housing.

12 (C) At least 1 individual who has extensive

13 experience in construction of multifamily hous14 ing.

15 (D) At least 1 individual who has extensive

16 experience in the management of a community

17 development corporation.

18 A single member of the board with the appropriate

19 experience may satisfy the requirements of more

20 than 1 subparagraph of this paragraph. A single

21 member of the board with the appropriate qualifica22 tions and experience may satisfy the requirements of

23 a subparagraph of paragraph (1) and a subpara24 graph of this paragraph.
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1 (c) POLITICAL AFFILIATION.—Not more than 6

2 members of the Board may be of the same political party.

3 (d) TERMS.—

4 (1) IN GENERAL.—Each member of the Board

5 shall be appointed for a term of 4 years, except as

6 provided in paragraphs (2) and (3).

7 (2) TERMS OF INITIAL APPOINTEES.—As des8 ignated by the President at the time of appointment,

9 of the members first appointed—

10 (A) 3 shall be appointed for terms of 1

11 year;

12 (B) 3 shall be appointed for terms of 2

13 years;

14 (C) 3 shall be appointed for terms of 3

15 years; and

16 (D) 3 shall be appointed for terms of 4

17 years;

18 (3) VACANCIES.—Any member appointed to fill

19 a vacancy occurring before the expiration of the

20 term for which the member’s predecessor was ap21 pointed shall be appointed only for the remainder of

22 that term. A member may serve after the expiration

23 of that member’s term until a successor has taken

24 office. A vacancy in the Board shall be filled in the
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1 manner in which the original appointment was

2 made.

3 (e) CHAIRPERSON.—The Board shall elect a chair4 person from among members of the Board.

5 (f) QUORUM.—A majority of the members of the

6 Board shall constitute a quorum for the transaction of

7 business.

8 (g) VOTING.—Each member of the Board shall be en9 titled to 1 vote, which shall be equal to the vote of every

10 other member of the Board.

11 (h) PROHIBITION ON ADDITIONAL PAY.—Members of

12 the Board shall serve without compensation, but shall be

13 reimbursed for travel, subsistence, and other necessary ex14 penses incurred in the performance of their duties as

15 members of the Board.

16 SEC. 403. FUNCTIONS.

17 The purpose of this subtitle is to establish the Board

18 as a nonpolitical entity to carry out the following func19 tions:

20 (1) EVALUATION OF DEEP SUBSIDY PRO21 GRAMS.—Measuring the performance and efficiency

22 of all ‘‘deep subsidy’’ programs for housing assist23 ance administered by the Secretary of Housing and

24 Urban Development, including the public housing

25 program under title II and the programs for tenant-
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1 and project-based rental assistance under title III

2 and section 8 of the United States Housing Act of

3 1937 (as in effect before the enactment of this Act).

4 (2) ESTABLISHMENT OF LHMA PERFORMANCE

5 BENCHMARKS.—Establishing standards and guide6 lines under section 431 for use by the Secretary in

7 measuring the performance and efficiency of local

8 housing and management authorities and other own9 ers and providers of federally assisted housing in

10 carrying out operational and financial functions.

11 (3) ESTABLISHMENT OF FINANCIAL AND PER12 FORMANCE AUDIT REQUIREMENTS.—Establishing

13 standards, requirements, and procedures for per14 formance and evaluation audits under section 432

15 and independent auditors conducting such audits.

16 (4) ACCREDITATION OF LHMA’S.—Establishing

17 a procedure under section 431(b) for accrediting

18 local housing and management authorities to receive

19 block grants under title I for the operation, mainte20 nance, and production of public housing, ensuring

21 that financial and performance audits under such

22 section are conducted annually for each local hous23 ing and management authority, and reviewing such

24 audits for purposes of accreditation.
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1 (5) INFORMATION AND TECHNICAL ASSIST2 ANCE.—Providing information, continuing edu3 cational opportunities, and technical assistance to

4 public and private housing providers.

5 (6) ESTABLISHMENT OF SYSTEM FOR IDENTI6 FYING LHMA DYSFUNCTIONS.—Establishing a sys7 tem for identifying potential problems in the oper8 ations and financial functions of local housing and

9 management authorities at a time before such prob10 lems result in serious and complicated deficiencies.

11 (7) ESTABLISHMENT OF SYSTEMS.—Establish12 ing and making available to local housing and man13 agement authorities and other housing providers ef14 ficient systems to assist in managing housing, in15 cluding computer systems for financial, occupancy,

16 and other functions that facilitate audits, reviews,

17 and evaluations under this Act and model practices

18 and procedures to ensure compliance with the re19 quirements of section 231(a).

20 (8) OTHER ACTIVITIES.—Carrying out such

21 other functions as may otherwise be provided under

22 law.
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1 SEC. 404. INITIAL ESTABLISHMENT OF STANDARDS AND

2 PROCEDURES FOR LHMA COMPLIANCE.

3 (a) DEADLINE.—The Board shall establish the stand4 ards, guidelines, and procedures under sections 431 and

5 432 not later than the expiration of the 12-month period

6 beginning upon the completion of the appointment, under

7 section 402, of the initial members of the Board. Before

8 issuing such standards, guidelines, and procedures in final

9 form, the Board shall submit a copy to the Congress.

10 (b) PRIORITY OF INITIAL EVALUATIONS.—After or11 ganization of the Board and establishment of standards,

12 guidelines, and procedures under sections 431 and 432,

13 the Board shall commence evaluations under section

14 434(b) for the purpose of accrediting local housing and

15 management authorities and shall give priority to conduct16 ing evaluations of local housing and management authori17 ties that are designated as troubled public housing agen18 cies under section 6(j) of the United States Housing Act

19 of 1937 (as in effect before the date of the enactment of

20 this Act) pursuant to section 431(d).

21 SEC. 405. POWERS.

22 (a) HEARINGS.—The Board may, for the purpose of

23 carrying out this subtitle, hold such hearings and sit and

24 act at such times and places as the Board determines ap25 propriate.
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1 (b) RULES AND REGULATIONS.—The Board may

2 adopt such rules and regulations as may be necessary to

3 establish its procedures and to govern the manner of its

4 operations, organization, and personnel.

5 (c) ASSISTANCE FROM FEDERAL AGENCIES.—

6 (1) INFORMATION.—The Board may secure di7 rectly from any department or agency of the Federal

8 Government such information as the Board may re9 quire for carrying out its functions, including com10 munity improvement plans submitted to the Sec11 retary by local housing and management authorities

12 under title II. Upon request of the Board, any such

13 department or agency shall furnish such informa14 tion. The Board may acquire information directly

15 from local housing and management authorities to

16 the same extent the Secretary may acquire such in17 formation.

18 (2) GENERAL SERVICES ADMINISTRATION.—

19 The Administrator of General Services shall provide

20 to the Board, on a reimbursable basis, such adminis21 trative support services as the Board may request.

22 (3) DEPARTMENT OF HOUSING AND URBAN DE23 VELOPMENT.—Upon the request of the chairperson

24 of the Board, the Secretary of Housing and Urban

25 Development shall, to the extent possible and subject
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1 to the discretion of the Secretary, detail any of the

2 personnel of the Department of Housing and Urban

3 Development, on a nonreimbursable basis, to assist

4 the Board in carrying out its functions under this

5 subtitle.

6 (d) MAILS.—The Board may use the United States

7 mails in the same manner and under the same conditions

8 as other Federal agencies.

9 (e) CONTRACTING.—The Board may, to such extent

10 and in such amounts as are provided in appropriations

11 Acts, enter into contracts with private firms, institutions,

12 and individuals for the purpose of conducting research or

13 surveys necessary to enable the Board to discharge its

14 functions under this subtitle.

15 (f) STAFF.—

16 (1) EXECUTIVE DIRECTOR.—The Board shall

17 appoint an executive director of the Board, who shall

18 be compensated at a rate fixed by the Board, but

19 which shall not exceed the rate established for level

20 V of the Executive Schedule under title 5, United

21 States Code.

22 (2) OTHER PERSONNEL.—In addition to the ex23 ecutive director, the Board may appoint and fix the

24 compensation of such personnel as the Board consid25 ers necessary, in accordance with the provisions of
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1 title 5, United States Code, governing appointments

2 to the competitive service, and the provisions of

3 chapter 51 and subchapter III of chapter 53 of such

4 title, relating to classification and General Schedule

5 pay rates. Such personnel may include personnel for

6 assessment teams under section 431(b).

7 SEC. 406. FEES.

8 (a) ACCREDITATION FEES.—The Board may estab9 lish and charge fees for the accreditation of local housing

10 and management authorities as the Board considers nec11 essary to cover the costs of the operations of the Board

12 relating to establishing standards, guidelines, and proce13 dures for evaluating the performance of local housing and

14 management authorities and performing comprehensive

15 reviews relating to the accreditation of such authorities.

16 (b) TECHNICAL ASSISTANCE FEES.—The Board may

17 establish and charges fees for providing information, tech18 nical assistance, and other products, including information

19 and systems provided under paragraphs (5) and (7) of sec20 tion 403, as the Board considers appropriate to cover the

21 costs of such activities.

22 (c) FUND.—Any fees collected under this section

23 shall be deposited in an operations fund for the Board,

24 which is hereby established in the Treasury of the United

25 States. Amounts in such fund shall be available, to the
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1 extent provided in appropriation Acts, for the expenses of

2 the Board in carrying out its functions under this subtitle.

3 SEC. 407. REPORTS.

4 The Board shall submit a report to the Congress an5 nually describing, for the year for which the report is

6 made—

7 (1) any modifications made by the Board to the

8 standards, guidelines, and procedures issued under

9 section 431 and 432 by the Board;

10 (2) the results of the assessments, reviews, and

11 evaluations conducted by the Board under subtitle

12 B;

13 (3) the types and extent of assistance, informa14 tion, and products provided by the Board; and

15 (4) any other activities of the Board.

16 Subtitle B—Accreditation and

17 Oversight Standards and Proce18 dures

19 SEC. 431. ESTABLISHMENT OF PERFORMANCE BENCH20 MARKS AND ACCREDITATION PROCEDURES.

21 (a) PERFORMANCE BENCHMARKS.—

22 (1) PERFORMANCE AREAS.—The Housing

23 Foundation and Accreditation Board established

24 under section 401 (in this subtitle referred to as the

25 ‘‘Board’’) shall establish standards and guidelines,
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1 for use under section 433 by the Secretary, to meas2 ure the performance of local housing and manage3 ment authorities in all aspects relating to—

4 (A) operational and financial functions;

5 (B) providing, maintaining, and assisting

6 low-income housing—

7 (i) that is safe, clean, and healthy, as

8 required under sections 233 and 328;

9 (ii) in a manner consistent with the

10 comprehensive housing affordability strat11 egy under section 105 of the Cranston12 Gonzalez National Affordable Housing Act;

13 (iii) that is occupied by eligible fami14 lies; and

15 (iv) that is affordable to eligible fami16 lies;

17 (C) producing low-income housing and exe18 cuting capital projects, if applicable;

19 (D) administering the provision of housing

20 assistance under title III;

21 (E) accomplishing the goals and plans set

22 forth in the community improvement plan for

23 the authority;

24 (F) promoting responsibility and self-suffi25 ciency among residents of public housing devel-
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1 opments of the authority and assisted families

2 under title III; and

3 (G) complying with the other requirements

4 of the authority under block grant contracts

5 under title II, grant agreements under title III,

6 and the provisions of this Act.

7 (2) PERFORMANCE CATEGORIES.—In establish8 ing standards and guidelines under this section, the

9 Board shall define various levels of performance,

10 which shall include the following levels:

11 (A) EXCEPTIONALLY WELL-MANAGED.—A

12 minimum acceptable level of performance in the

13 areas specified in paragraph (1) for classifica14 tion of a local housing and management author15 ity as exceptionally well-managed, which shall

16 indicate that the authority functions exception17 ally.

18 (B) WELL-MANAGED.—A minimum accept19 able level of performance in the areas specified

20 in paragraph (1) for classification of a local

21 housing and management authority as well22 managed, which shall indicate that the author23 ity functions satisfactorily.

24 (C) TROUBLED.—A minimum level of per25 formance in the areas specified in paragraph
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1 (1) for classification of a local housing and

2 management authority as a troubled authority,

3 which shall indicate that the authority functions

4 unsatisfactorily with respect to certain areas

5 under paragraph (1), but such deficiencies are

6 not irreparable.

7 (D) DYSFUNCTIONAL.—A maximum level

8 of performance in the areas specified in para9 graph (1) for classification of a local housing

10 and management authority as dysfunctional,

11 which shall indicate that the authority suffers

12 such deficiencies that the authority should not

13 be allowed to continue to manage low-income

14 housing or administer housing assistance.

15 (3) ACCREDITATION STANDARD.—In establish16 ing standards and guidelines under this section, the

17 Board shall establish a minimum acceptable level of

18 performance for accrediting a local housing and

19 management authority for purposes of authorizing

20 the authority to enter into a new block grant con21 tract under title II or a new grant agreement under

22 title III.

23 (b) ACCREDITATION PROCEDURE.—The Accredita24 tion Board shall establish procedures for—
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1 (1) reviewing the performance of a local hous2 ing and management authority over the term of the

3 expiring accreditation, which review shall be con4 ducted during the 12-month period that ends upon

5 the conclusion of the term of the expiring accredita6 tion;

7 (2) evaluating the capability of a local housing

8 and management authority that proposes to enter

9 into an initial block grant contract under title II or

10 an initial grant agreement under title III; and

11 (3) determining whether the authority complies

12 with the standards and guidelines for accreditation

13 established under subsection (a)(3).

14 The procedures for a review or evaluation under this sub15 section shall provide for the review or evaluation to be con16 ducted by an assessment team established by the Board,

17 which shall review annual financial and performance au18 dits conducted under section 432 and obtain such informa19 tion as the Board may require.

20 (c) IDENTIFICATION OF POTENTIAL PROBLEMS.—

21 The standards and guidelines under subsection (a) and the

22 procedure under subsection (b) shall be established in a

23 manner designed to identify potential problems in the op24 erations, management, functioning of local housing and
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1 management authorities at a time before such problems

2 result in serious and complicated deficiencies.

3 (d) INTERIM APPLICABILITY OF PHMAP.—Notwith4 standing any other provision of this subtitle, during the

5 period that begins on the date of the enactment of this

6 Act and ends upon the date of the effectiveness of final

7 regulations establishing the standards, guidelines, and

8 procedures required under this section and section 432,

9 the Secretary shall assess the management performance

10 of local housing and management authorities in the same

11 manner provided for public housing agencies pursuant to

12 section 6(j) of the United States Housing Act of 1937 (as

13 in effect immediately before the enactment of this Act)

14 and may take actions with respect to local housing and

15 management authorities that are authorized under such

16 section with respect to public housing agencies.

17 SEC. 432. ANNUAL FINANCIAL AND PERFORMANCE AUDIT.

18 (a) REQUIREMENT.—The Secretary shall require

19 each local housing and management authority that re20 ceives grant amounts under this Act in a fiscal year to

21 have a financial and performance audit of the authority

22 conducted for the fiscal year and to submit the results of

23 the audit to the Secretary and the Board.

24 (b) PROCEDURES.— The Accreditation Board shall

25 establish the requirements and procedures for such audits
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1 under this section, in accordance with the requirements

2 under this section. Such procedures shall—

3 (1) provide for the audit to be conducted by an

4 independent auditor jointly selected by board and

5 authority;

6 (2) authorize the auditor and the Board to ob7 tain information from a local housing and manage8 ment authority, to access any books, documents, pa9 pers, and records of an authority that are pertinent

10 to this Act and assistance received pursuant to this

11 Act, and to review any reports of an authority to the

12 Secretary.

13 (3) be designed to identify potential problems in

14 the operations, management, functioning of a local

15 housing and management authority at a time before

16 such problems result in serious and complicated defi17 ciencies.

18 (c) PURPOSE.—Audits under this section shall be de19 signed to evaluate the financial performance and sound20 ness and management performance of the local housing

21 and management authority board of directors (or other

22 similar governing body) and the authority management of23 ficials and staff, assess the compliance of an authority

24 with all aspects of the standards and guidelines estab25 lished under section 431(a)(1), and provide information
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1 sufficient for the Secretary to designate the authority

2 under the categories established under section 431(a)(2).

3 (d) SINGLE AUDIT ACT COMPLIANCE.—An audit

4 under this section shall be made in a manner so that the

5 audit complies with the requirements for audits under

6 chapter 75 of title 31, United States Code.

7 (e) WITHHOLDING OF AMOUNTS FOR COSTS OF

8 AUDIT.—If the Secretary determines that a local housing

9 and management authority has failed to take the actions

10 required to submit an audit under this section for a fiscal

11 year, the Secretary may—

12 (1) arrange for, and pay the costs of, the audit;

13 and

14 (2) withhold, from the total allocation for any

15 fiscal year otherwise payable to the authority under

16 this Act, amounts sufficient to pay for the reason17 able costs of conducting an acceptable audit, includ18 ing, if appropriate, the reasonable costs of account19 ing services necessary to place the authority’s books

20 and records in condition that permits an audit.

21 SEC. 433. ANNUAL CLASSIFICATION BY PERFORMANCE

22 CATEGORY.

23 The Secretary shall annually designate each local

24 housing and management authority according to the per25 formance categories under section 431(a)(2). In determin-
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1 ing the classification of an authority, the Secretary shall

2 consider the most recent financial and performance audit

3 under section 432 of the authority and accreditation re4 ports under section 434(c) of the authority, but may not

5 undertake any audits and examinations of the authority.

6 SEC. 434. ACCREDITATION.

7 (a) REVIEW UPON EXPIRATION OF PREVIOUS AC8 CREDITATION.—The Accreditation Board shall perform a

9 comprehensive review of the performance of a local hous10 ing and management authority, in accordance with the

11 procedures established under section 431(b), before the

12 expiration of the term for which a previous accreditation

13 was granted under this subtitle.

14 (b) INITIAL EVALUATION.—

15 (1) IN GENERAL.—Before entering into an ini16 tial block grant contract under title II or an initial

17 grant agreement under title III with any local hous18 ing and management authority, the Board shall con19 duct a comprehensive evaluation of the capabilities

20 of the local housing and management authority.

21 (2) EXCEPTION.—Paragraph (1) shall not

22 apply to an initial block grant contract or grant

23 agreement entered into during the period beginning

24 upon the date of the enactment of this Act and end25 ing upon the date of the effectiveness of final regula-
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1 tions establishing the standards, guidelines, and pro2 cedures required under section 431 or 432 with any

3 public housing agency that received amounts under

4 the United States Housing Act of 1937 during fiscal

5 year 1995.

6 (c) DETERMINATION AND REPORT.—Pursuant to a

7 review or evaluation under this section, the Board shall

8 determine whether the authority meets the requirements

9 for accreditation under section 431(a)(3), shall accredit

10 the authority if it meets such requirements, and shall sub11 mit a report on the results of the review or evaluation and

12 such determination to the Secretary and the authority.

13 (d) ACCREDITATION.—An accreditation under this

14 section shall expire at the end the term established by the

15 Board in granting the accreditation, which may not exceed

16 5 years. The Board may qualify an accreditation placing

17 conditions on the accreditation based on the future per18 formance of the authority.

19 SEC. 435. PERFORMANCE AGREEMENTS FOR TROUBLED

20 AUTHORITIES.

21 (a) IN GENERAL.—Upon designating a local housing

22 and management authority as a troubled authority under

23 section 431(a)(2)(C), the Secretary shall seek to enter into

24 a agreement with the authority providing for improving

25 the management performance of the authority.
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1 (b) CONTENTS.—An agreement under this section

2 shall set forth—

3 (1) targets for improving performance, as meas4 ured by the guidelines and standards established

5 under section 431(a)(1) and other requirements

6 within a specified period of time, which shall include

7 targets to be met upon the expiration of the 12-

8 month period beginning upon entering into the

9 agreement;

10 (2) strategies for meeting such targets;

11 (3) sanctions for failure to implement such

12 strategies; and

13 (4) to the extent the Secretary deems appro14 priate, a plan for enhancing resident involvement in

15 the management of the local housing and manage16 ment authority.

17 (c) LOCAL ASSISTANCE IN IMPLEMENTATION.—The

18 Secretary and the local housing and management author19 ity shall, to the maximum extent practicable, seek the as20 sistance of local public and private entities in carrying out

21 an agreement under this section.

22 (d) DEFAULT UNDER PERFORMANCE AGREE23 MENT.—Upon the expiration of the 12-month period be24 ginning upon entering into an agreement under this sec25 tion with a local housing and management authority, the
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1 Secretary shall review the performance of the authority

2 in relation to the performance targets and strategies under

3 the agreement. If the Secretary determines that the au4 thority has failed to comply with the performance targets

5 established for the expiration of such period, the Sec6 retary—

7 (1) shall take the action authorized under sec8 tion 437(b)(2); and

9 (2) may withhold, from any metropolitan city or

10 urban county (as such terms are defined in section

11 102 of the Housing and Community Development

12 Act of 1974) within which any portion of the juris13 diction of the authority is located, any amounts allo14 cated for such city or county under section 106 of

15 such Act.

16 SEC. 436. OPTION TO DEMAND CONVEYANCE OF TITLE TO

17 OR POSSESSION OF PUBLIC HOUSING.

18 (a) AUTHORITY FOR CONVEYANCE.—A contract

19 under section 201 for block grants under title II (including

20 contracts which amend or supersede contracts previously

21 made (including contracts for contributions)) may provide

22 that upon the occurrence of a substantial default with re23 spect to the covenants or conditions to which the local

24 housing and management authority is subject (as such

25 substantial default shall be defined in such contract) or
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1 upon designation of the authority as dysfunctional pursu2 ant to section 431(a)(2)(D), the local housing and man3 agement authority shall be obligated, at the option of the

4 Secretary, to—

5 (1) convey title in any case where, in the deter6 mination of the Secretary (which determination shall

7 be final and conclusive), such conveyance of title is

8 necessary to achieve the purposes of this Act; or

9 (2) deliver to the Secretary possession of the

10 development, as then constituted, to which such con11 tract relates.

12 (b) OBLIGATION TO RECONVEY.—Any block grant

13 contract under title II containing the provisions author14 ized in subsection (a) shall also provide that the Secretary

15 shall be obligated to reconvey or redeliver possession of

16 the development, as constituted at the time of

17 reconveyance or redelivery, to such local housing and man18 agement authority or to its successor (if such local housing

19 and management authority or a successor exists) upon

20 such terms as shall be prescribed in such contract, and

21 as soon as practicable after—

22 (1) the Secretary is satisfied that all defaults

23 with respect to the development have been cured,

24 and that the development will, in order to fulfill the
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1 purposes of this Act, thereafter be operated in ac2 cordance with the terms of such contract; or

3 (2) the termination of the obligation to make

4 annual block grants to the authority, unless there

5 are any obligations or covenants of the authority to

6 the Secretary which are then in default.

7 Any prior conveyances and reconveyances or deliveries and

8 redeliveries of possession shall not exhaust the right to re9 quire a conveyance or delivery of possession of the develop10 ment to the Secretary pursuant to subsection (a) upon the

11 subsequent occurrence of a substantial default.

12 (c) CONTINUED GRANTS FOR REPAYMENT OF BONDS

13 AND NOTES UNDER 1937 ACT.—If—

14 (1) a contract for block grants under title II for

15 an authority includes provisions that expressly state

16 that the provisions are included pursuant to this

17 subsection, and

18 (2) the portion of the block grant payable for

19 debt service requirements pursuant to the contract

20 has been pledged by the local housing and manage21 ment authority as security for the payment of the

22 principal and interest on any of its obligations,

23 then—

24 (A) the Secretary shall (notwithstanding

25 any other provisions of this Act), continue to
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1 make the block grant payments for the author2 ity so long as any of such obligations remain

3 outstanding; and

4 (B) the Secretary may covenant in such a

5 contract that in any event such block grant

6 amounts shall in each year be at least equal to

7 an amount which, together with such income or

8 other funds as are actually available from the

9 development for the purpose at the time such

10 block grant payments are made, will suffice for

11 the payment of all installments of principal and

12 interest on the obligations for which the

13 amounts provided for in the contract shall have

14 been pledged as security that fall due within the

15 next succeeding 12 months.

16 In no case shall such block grant amounts be in excess

17 of the maximum sum specified in the contract involved,

18 nor for longer than the remainder of the maximum period

19 fixed by the contract.

20 SEC. 437. REMOVAL OF INEFFECTIVE LHMA’S.

21 (a) CONDITIONS OF REMOVAL.—The actions speci22 fied in subsection (b) may be taken only upon—

23 (1) the occurrence of events or conditions that

24 constitute a substantial default by a local housing

25 and management authority with respect to (A) the
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1 covenants or conditions to which the local housing

2 and management authority is subject, or (B) an

3 agreement entered into under section 435;

4 (2) designation of the authority as dysfunc5 tional pursuant to section 431(a)(2)(D);

6 (3) in the case only of action under subsection

7 (b)(1), failure of a local housing and management

8 authority to obtain reaccreditation upon the expira9 tion of the term of a previous accreditation granted

10 under this subtitle; or

11 (4) submission to the Secretary of a petition by

12 the residents of the public housing owned or oper13 ated by a local housing and management authority

14 that is designated as troubled or dysfunctional pur15 suant to section 431(a)(2).

16 (b) REMOVAL ACTIONS.—Notwithstanding any other

17 provision of law or of any block grant contract under title

18 II or any grant agreement under title III, in accordance

19 with subsection (a), the Secretary may—

20 (1) solicit competitive proposals from other local

21 housing and management authorities and private

22 housing management agents (which, in the discre23 tion of the Secretary, may be selected by existing

24 public housing residents through administrative pro25 cedures established by the Secretary) and, if appro-
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1 priate, provide for such agents to manage all, or

2 part, of the housing administered by the local hous3 ing and management authority or all or part of the

4 other functions of the authority;

5 (2) take possession of the local housing and

6 management authority, including any developments

7 or functions of the authority under any section of

8 this Act;

9 (3) solicit competitive proposals from other local

10 housing and management authorities and private en11 tities with experience in construction management

12 and, if appropriate, provide for such authorities or

13 firms to oversee implementation of assistance made

14 available for capital improvements for public hous15 ing;

16 (4) require the authority to make other ar17 rangements acceptable to the Secretary and in the

18 best interests of the public housing residents and as19 sisted families under title III for managing all, or

20 part of, the public housing administered by the au21 thority or the functions of the authority; or

22 (5) if the Secretary determines that reasonable

23 opportunities for remedy using the actions under

24 paragraphs (1) through (4) have failed or are not

25 available, petition for the appointment of a receiver
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1 for the local housing and management authority to

2 any district court of the United States or to any

3 court of the State in which any portion of the juris4 diction of the local housing and management author5 ity is located, that is authorized to appoint a receiver

6 for the purposes and having the powers prescribed

7 in this section.

8 (c) EMERGENCY ASSISTANCE.—The Secretary may

9 make available to receivers and other entities selected or

10 appointed pursuant to this section such assistance as is

11 fair and reasonable to remedy the substantial deteriora12 tion of living conditions in individual public housing devel13 opments or other related emergencies that endanger the

14 health, safety and welfare of public housing residents or

15 assisted families under title III.

16 (d) POWERS OF SECRETARY.—If the Secretary takes

17 possession of an authority, or any developments or func18 tions of an authority, pursuant to subsection (b)(2), the

19 Secretary—

20 (1) may abrogate contracts that substantially

21 impede correction of the substantial default or im22 provement of the classification;

23 (2) may demolish and dispose of assets of the

24 authority in accordance with subtitle E;
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1 (3) where determined appropriate by the Sec2 retary, may require the establishment of one or more

3 new local housing and management authorities;

4 (4) may consolidate the authority into other

5 well-managed local housing and management au6 thorities with the consent of such well-managed au7 thorities;

8 (5) shall not be subject to any State or local

9 laws that, in the determination of the receiver, sub10 stantially impede correction of the substantial de11 fault or improvement of the classification; and

12 (6) shall have such additional authority as a

13 district court of the United States has the authority

14 to confer under like circumstances upon a receiver to

15 achieve the purposes of the receivership.

16 The Secretary may appoint, on a competitive or non17 competitive basis, an individual or entity as an administra18 tive receiver to assume the Secretary’s responsibility under

19 this paragraph for the administration of a local housing

20 and management authority. The Secretary may delegate

21 to the administrative receiver any or all of the powers of

22 the Secretary under this subsection. Regardless of any del23 egation under this subsection, an administrative receiver

24 may not require the establishment of one or more new

25 local housing and management authorities pursuant to
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1 paragraph (3) unless the Secretary first approves such es2 tablishment. For purposes of this subsection, the term

3 ‘‘local housing and management authority’’ includes any

4 developments or functions of a local housing and manage5 ment authority under any section of this title.

6 (e) RECEIVERSHIP.—

7 (1) REQUIRED APPOINTMENT.—In any proceed8 ing under subsection (b)(5), upon a determination

9 that a substantial default has occurred, and without

10 regard to the availability of alternative remedies, the

11 court shall appoint a receiver to conduct the affairs

12 of the local housing and management authority in a

13 manner consistent with this Act and in accordance

14 with such further terms and conditions as the court

15 may provide. The receiver appointed may be another

16 local housing and management authority, a private

17 management corporation, the Secretary, or any

18 other appropriate entity. The court shall have power

19 to grant appropriate temporary or preliminary relief

20 pending final disposition of the petition by the Sec21 retary.

22 (2) POWERS OF RECEIVER.—If a receiver is ap23 pointed for a local housing and management author24 ity pursuant to subsection (b)(5), in addition to the
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1 powers accorded by the court appointing the re2 ceiver, the receiver—

3 (A) may abrogate contracts that substan4 tially impede correction of the substantial de5 fault or improvement of the classification;

6 (B) may demolish and dispose of assets of

7 the authority in accordance with subtitle E;

8 (C) where determined appropriate by the

9 Secretary, may require the establishment of one

10 or more new local housing and management au11 thorities, to the extent permitted by State and

12 local law; and

13 (D except as provided in subparagraph

14 (C), shall not be subject to any State or local

15 laws that, in the determination of the receiver,

16 substantially impede correction of the substan17 tial default or improvement of the classification.

18 For purposes of this paragraph, the term ‘‘local

19 housing and management authority’’ includes any

20 developments or functions of a local housing and

21 management authority under any section of this

22 title.

23 (3) TERMINATION.—The appointment of a re24 ceiver pursuant to this subsection may be termi25 nated, upon the petition of any party, when the
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1 court determines that all defaults have been cured or

2 the local housing and management authority will be

3 able to make the same amount of progress in cor4 recting the management of the housing as the re5 ceiver.

6 (f) LIABILITY.—If the Secretary takes possession of

7 an authority pursuant to subsection (b)(2) or a receiver

8 is appointed pursuant to subsection (b)(5) for a local

9 housing and management authority, the Secretary or the

10 receiver shall be deemed to be acting in the capacity of

11 the local housing and management authority (and not in

12 the official capacity as Secretary or other official) and any

13 liability incurred shall be a liability of the local housing

14 and management authority.

15 SEC. 438. MANDATORY TAKEOVER OF CHRONICALLY TROU16 BLED PHA’S.

17 (a) REMOVAL OF AGENCY.—Notwithstanding any

18 other provision of this Act, not later than the expiration

19 of the 180-day period beginning on the date of the enact20 ment of this Act, the Secretary shall take one of the fol21 lowing actions with respect to each chronically troubled

22 public housing agency:

23 (1) CONTRACTING FOR MANAGEMENT.—Solicit

24 competitive proposals for the management of the

25 agency pursuant to section 437(b)(1) and replace
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1 the management of the agency pursuant to selection

2 of such a proposal.

3 (2) TAKEOVER.—Take possession of the agency

4 pursuant to section 437(b)(2) of such Act.

5 (b) DEFINITION.—For purposes of this section, the

6 term ‘‘chronically troubled public housing agency’’ means

7 a public housing agency that, as of the date of the enact8 ment of this Act, is designated under section 6(j)(2) of

9 the United States Housing Act of 1937 (as in effect imme10 diately before the enactment of this Act) as a troubled

11 public housing agency and has been so designated continu12 ously for the 3-year period ending upon such date of en13 actment; except that such term does not include any agen14 cy that owns or operates less than 1250 public housing

15 dwelling units and that the Secretary determines can, with

16 a reasonable amount of effort, make such improvements

17 or remedies as may be necessary to remove its designation

18 as troubled within 12 months.

19 SEC. 439. TREATMENT OF TROUBLED PHA’S.

20 (a) EFFECT OF TROUBLED STATUS ON CHAS.—The

21 comprehensive housing affordability strategy for the first

22 year beginning after the date of the enactment of this Act

23 for the State or unit of general local government in which

24 any troubled public housing agency is located shall not be

25 considered to comply with the requirements under section
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1 105 of the Cranston-Gonzalez National Affordable Hous2 ing Act unless such plan includes a description of the man3 ner in which the State or unit will assist such troubled

4 agency in improving its operations to remove such des5 ignation.

6 (b) DEFINITION.—For purposes of this section, the

7 term ‘‘troubled public housing agency’’ means a public

8 housing agency that—

9 (1) upon the date of the enactment of this Act,

10 is designated under section 6(j)(2) of the United

11 States Housing Act of 1937 (as in effect imme12 diately before the enactment of this Act) as a trou13 bled public housing agency; and

14 (2) is not a chronically troubled public housing

15 agency, as such term is defined in section 438(b) of

16 this Act.

17 SEC. 438. MAINTENANCE OF AND ACCESS TO RECORDS.

18 (a) KEEPING OF RECORDS.—Each local housing and

19 management authority shall keep such records as may be

20 reasonably necessary to disclose the amount and the dis21 position by the authority of the proceeds of assistance re22 ceived pursuant to this Act and to ensure compliance with

23 the requirements of this Act.

24 (b) ACCESS TO DOCUMENTS.—The Secretary, the In25 spector General for the Department of Housing and
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1 Urban Development, and the Comptroller General of the

2 United States shall each have access for the purpose of

3 audit and examination to any books, documents, papers,

4 and records of a local housing and management authority

5 that are pertinent to this Act and assistance received pur6 suant to this Act.

7 SEC. 440. ANNUAL REPORTS REGARDING TROUBLED

8 LHMA’S.

9 The Secretary shall submit a report to the Congress

10 annually, as a part of the report of the Secretary under

11 section 8 of the Department of Housing and Urban Devel12 opment Act, that—

13 (1) identifies the local housing and management

14 authorities that are designated as troubled or dys15 functional under section 431(a)(2) and the reasons

16 for such designation;

17 (2) identifies the local housing and management

18 authorities that have lost accreditation pursuant to

19 section 432; and

20 (3) describes any actions that have been taken

21 in accordance with sections 433, 434, and 435.

22 SEC. 442. APPLICABILITY TO RESIDENT MANAGEMENT

23 CORPORATIONS.

24 The Secretary shall apply the provisions of this sub25 title to resident management corporations in the same
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1 manner as applied to local housing and management au2 thorities.

3 SEC. 443. INAPPLICABILITY TO INDIAN HOUSING.

4 The provisions of sections 431, 432, 433, 434, 435,

5 437, and 441 shall not apply to public housing developed

6 or operated pursuant to a contract between the Secretary

7 and an Indian housing authority.

8 TITLE V—REPEALS AND

9 CONFORMING AMENDMENTS

10 SEC. 501. REPEALS.

11 (a) IN GENERAL.—The following provisions of law

12 are hereby repealed:

13 (1) UNITED STATES HOUSING ACT OF 1937.—

14 The United States Housing Act of 1937 (42 U.S.C.

15 1437 et seq.).

16 (2) ASSISTED HOUSING ALLOCATION.—Section

17 213 of the Housing and Community Development

18 Act of 1974 (42 U.S.C. 1439).

19 (3) PUBLIC HOUSING RENT WAIVERS FOR PO20 LICE.—Section 519 of the Cranston-Gonzalez Na21 tional Affordable Housing Act (42 U.S.C. 1437a–1).

22 (4) OCCUPANCY PREFERENCES AND INCOME

23 MIX FOR NEW CONSTRUCTION AND SUBSTANTIAL

24 REHABILITATION PROJECTS.—Subsection (c) of sec25 tion 545, and section 555, of the Cranston-Gonzalez
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1 National Affordable Housing Act (42 U.S.C. 1437f

2 note).

3 (5) RETROACTIVE PAYMENT FOR ANNUAL AD4 JUSTMENT FACTORS.—Section 801 of the Depart5 ment of Housing and Urban Development Reform

6 Act of 1989 42 U.S.C. 1437f note).

7 (6) EXCESSIVE RENT BURDEN DATA.—Sub8 section (b) of section 550 of the Cranston-Gonzalez

9 National Affordable Housing Act (42 U.S.C. 1437f

10 note).

11 (7) SECTION 8 DISASTER RELIEF.—Sections

12 931 and 932 of the Cranston-Gonzalez National Af13 fordable Housing Act (42 U.S.C. 1737c note).

14 (8) MOVING TO OPPORTUNITY FOR FAIR HOUS15 ING.—Section 152 of the Housing and Community

16 Development Act of 1992 (42 U.S.C. 1437f note).

17 (9) REPORT REGARDING FAIR HOUSING OBJEC18 TIVES.—Section 153 of the Cranston-Gonzalez Na19 tional Affordable Housing Act (42 U.S.C. 1437f

20 note).

21 (10) SECTION 8 COMMUNITY INVESTMENT DEM22 ONSTRATION.—Section 6 of the HUD Demonstra23 tion Act of 1993 (42 U.S.C. 1437f note).

24 (11) SPECIAL PROJECTS FOR ELDERLY OR

25 HANDICAPPED FAMILIES.—Section 209 of the Hous-
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1 ing and Community Development Act of 1974 (42

2 U.S.C. 1438).

3 (12) ACCESS TO PHA BOOKS.—Section 816 of

4 the Housing Act of 1954 (42 U.S.C. 1435).

5 (13) MISCELLANEOUS PROVISIONS.—Sub6 sections (b)(1), (c), and (d) of section 326 of the

7 Housing and Community Development Amendments

8 of 1981 (Public Law 97–35, 95 Stat. 406; 42

9 U.S.C. 1437f note).

10 (14) PAYMENT FOR DEVELOPMENT MAN11 AGERS.—Section 329A of the Housing and Commu12 nity Development Amendments of 1981 (42 U.S.C.

13 1437j–1).

14 (15) PURCHASE OF PHA OBLIGATIONS.—Sec15 tion 329E of the Housing and Community Develop16 ment Amendments of 1981 (12 U.S.C. 2294a).

17 (16) PROCUREMENT OF INSURANCE BY

18 PHA’S.—

19 (A) In the item relating to ‘‘ADMINISTRA20 TIVE PROVISIONS’’ under the heading ‘‘MAN21 AGEMENT AND ADMINISTRATION’’ in title II of

22 the Departments of Veterans Affairs and Hous23 ing and Urban Development, and Independent

24 Agencies Appropriations Act, 1991, the penul-
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1 timate undesignated paragraph of such item

2 (Public Law 101–507; 104 Stat. 1369).

3 (B) In the item relating to ‘‘ADMINISTRA4 TIVE PROVISIONS’’ under the heading ‘‘MAN5 AGEMENT AND ADMINISTRATION’’ in title II of

6 the Departments of Veterans Affairs and Hous7 ing and Urban Development, and Independent

8 Agencies Appropriations Act, 1992, the 19th

9 through 23d undesignated paragraphs of such

10 item (Public Law 102–139; 105 Stat. 758).

11 (17) PUBLIC HOUSING CHILDHOOD DEVELOP12 MENT.—Section 222 of the Housing and Urban13 Rural Recovery Act of 1983 (12 U.S.C. 1701z–6

14 note).

15 (18) INDIAN HOUSING CHILDHOOD DEVELOP16 MENT.—Section 518 of the Cranston-Gonzalez Na17 tional Affordable Housing Act (12 U.S.C. 1701z–6

18 note).

19 (19) PUBLIC HOUSING COMPREHENSIVE TRAN20 SITION DEMONSTRATION.—Section 126 of the Hous21 ing and Community Development Act of 1987 (42

22 U.S.C. 1437f note).

23 (20) PUBLIC HOUSING ONE-STOP PERINATAL

24 SERVICES DEMONSTRATION.—Section 521 of the
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1 Cranston-Gonzalez National Affordable Housing Act

2 (42 U.S.C. 1437t note).

3 (21) PUBLIC HOUSING MINCS DEMONSTRA4 TION.—Section 522 of the Cranston-Gonzalez Na5 tional Affordable Housing Act (42 U.S.C. 1437f

6 note).

7 (22) PUBLIC HOUSING ENERGY EFFICIENCY

8 DEMONSTRATION.—Section 523 of the Cranston9 Gonzalez National Affordable Housing Act (42

10 U.S.C. 1437g note).

11 (23) OMAHA HOMEOWNERSHIP DEMONSTRA12 TION.—Section 132 of the Housing and Community

13 Development Act of 1992 (Public Law 102–550;

14 106 stat. 3712).

15 (24) PUBLIC AND ASSISTED HOUSING YOUTH

16 SPORTS PROGRAMS.—Section 520 of the Cranston17 Gonzalez National Affordable Housing Act (42

18 U.S.C. 11903a).

19 (25) PUBLIC AND ASSISTED HOUSING DRUG

20 ELIMINATION.—The Public and Assisted Housing

21 Drug Elimination Act of 1990 (42 U.S.C. 11901

22 note).

23 (b) SAVINGS PROVISION.—Except as otherwise spe24 cifically provided in this Act, any amounts appropriated

25 to carry out the provisions repealed by subsection (a) that
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1 are obligated before the date of the enactment of this Act

2 shall be used in the manner provided under such provi3 sions (as in effect before such repeal) and under any re4 quirements, agreements, and regulations pursuant to such

5 provisions.

6 SEC. 502. CONFORMING PROVISIONS.

7 (a) ALLOCATION OF ELDERLY HOUSING

8 AMOUNTS.—Section 202(l) of the Housing Act of 1959

9 (12 U.S.C. 1701q(l)) is amended by adding at the end

10 the following new paragraph:

11 ‘‘(4) CONSIDERATION IN ALLOCATING ASSIST12 ANCE.—Assistance under this section shall be allo13 cated in a manner that ensures that the awards of

14 the assistance are made for projects of sufficient size

15 to accommodate facilities for supportive services ap16 propriate to the needs of frail elderly residents.’’.

17 (b) REFERENCES.—Except as provided in section

18 271 and 501(b), any reference in any other Federal law,

19 Executive order, rule, regulation, or delegation of author20 ity, or any document of or pertaining to—

21 (1) public housing assisted under the United

22 States Housing Act of 1937 is deemed to refer to

23 public housing assisted under title II of this Act;

24 and
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1 (2) to assistance under section 8 of the United

2 States Housing Act of 1937 is deemed to refer to

3 assistance under title III of this Act.

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